Question

A TV was stolen from an insured's home while she was on vacation. The TV was three years old, and cost

the insured $700. The value of the TV when it was stolen was $300. What amount, if any, will the insurance
company pay under a standard policy?

Answer 1

The insurance company will pay $700 under a standard policy.

Step-by-step explanation:

As per the standard homeowner's policy, the replacement cost provides the coverage to the stolen, repair or replaced goods or any personal property at the day's cost.

So, based on this, the insurance company would pay her the insured amount of $700 for the $300 television.

The replacement cost coverage helps us more than that of the actual cost coverage.