You have a homeowner's policy with $120,000 coverage, a $1,000 deductible, and required coverage of 80 percent of the replacement cost. Their home recently suffered extensive fire damage in the amount of $92,000. Assuming the replacement value of the home was $160,000, how much will the insurance company pay on this loss? O $73,600 O $68,000 O $86,250 $85,300 $92,000
You have a homeowner's policy with $120,000 coverage, a $1,000 deductible, and required coverage of 80 percent of the replacement cost. Their home recently suffered extensive fire damage in the amount of $92,000. Assuming the replacement value of the home was $160,000, how much will the insurance company pay on this loss? O $73,600 O $68,000 O $86,250 $85,300 $92,000
Chapter10: Managing Property And Liability Risk
Section: Chapter Questions
Problem 2DTM
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![You have a homeowner's policy with $120,000 coverage, a $1,000 deductible, and required
coverage of 80 percent of the replacement cost. Their home recently suffered extensive fire damage
in the amount of $92,000. Assuming the replacement value of the home was $160,000, how much
will the insurance company pay on this loss?
O $73,600
$68,000
$86,250
$85,300
$92,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b2a219b-8fc3-46cd-bb39-b85b9be4d48a%2F6222b696-8b87-4b42-afb1-392d2811f979%2F5agnmjh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You have a homeowner's policy with $120,000 coverage, a $1,000 deductible, and required
coverage of 80 percent of the replacement cost. Their home recently suffered extensive fire damage
in the amount of $92,000. Assuming the replacement value of the home was $160,000, how much
will the insurance company pay on this loss?
O $73,600
$68,000
$86,250
$85,300
$92,000
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