Alex has owned his home for ten years. When he purchased it for $178,000, Alex bought a $160,000 homeowner's insurance policy with a $500 deductible. He still owns that policy, even though the replacement cost of the home is now $300,000, and the policy required coverage of 80 percent of the replacement cost.
How much insurance on the home should Alex carry now to be fully insured?
If Alex suffered a $20,000 fire loss to the home, how much would he be reimbursed for by the insurance company?

Answer rating: 100% (QA)

A To be fully insured Alex must get 80 of replacement co... View the full answer