Question

A home has a replacement value of $324,000. What is the amount of the insurance if the

coverage is:
a. 100% of the replacement value?
b. 90% of the replacement value?
c. 80% of the replacement value?

Answer 1

a) $324,000

b) $291,600

c) $259,200

Explanation:

The percentage of the replacement value represents how much of the house will be insured.

a) 100% of 324000 = 1.00 * 324000 = $324,000

b) 90% of 324000 = 0.9 * 324000 = $291,600

c) 80% of 324000 = 0.8 * 324000 = $259,200