Final answer:
A homeowner will receive the depreciated value of the actual ten-year-old refrigerator as the actual cash value from the policy, which accounts for the appliance's age and wear. So, the correct answer is a. the depreciated value of the actual refrigerator.
Step-by-step explanation:
If a policy states that a homeowner will receive actual cash value for a ten-year-old damaged kitchen refrigerator, the homeowner may receive the depreciated value of the actual refrigerator.
Actual cash value is typically calculated by taking the replacement cost of an item and subtracting depreciation, which reflects the item's age and wear.
In this case, the actual cash value would not be based on the cost to buy a new refrigerator, an inexpensive one, or an average cost refrigerator on today's market, nor would it allow the homeowner to choose any refrigerator they would like as a replacement.
The actual cash value accounts for the fact that the refrigerator has been in use for ten years and has lost value since its original purchase.
Therefore, the homeowner should not expect to receive an amount that would cover the cost of a brand-new refrigerator or even an average-priced one.
Instead, the payment would likely reflect the value of the ten-year-old appliance at the time of loss, with adjustments for its depreciated state.
So, the correct answer is a. the depreciated value of the actual refrigerator.