Question: How much would a homeowner receive with actual cash-value coverage and with replacement cost coverage for a 3-year-old sofa destroyed by a fire? The sofa

How much would a homeowner receive with actual cash-value coverage and with replacement cost coverage for a 3-year-old sofa destroyed by a fire? The sofa would cost $1,000 to replace today, whereas it cost $850 3 years ago, and it has an estimated life of 6 years.

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