John owns a house. He insured it for 150,000 with the clause of replacement cost insurance. The

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John owns a house. He insured it for £150,000 with the clause of replacement cost insurance. The house is 10 years old and has a useful life of 100 years. Its market fair value is £140,000. How much will John collect for his loss, if his house is totally destroyed in tornado? Explain your answer.

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Principles Of Risk Management And Insurance

ISBN: 9781292151076

13th Global Edition

Authors: George E. Rejda, Michael J. McNamara

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