Suppose that you purchase an unendorsed HO-3 policy. While the policy is in force, a fire occurs that destroys a living room set. The living room set cost $2000, but was 25% depreciated at the time of the fire. A replacement set of furniture will cost $2200. Assuming no deductible.

How much will you receive from your insurer if they use replacement cost less depreciation?

Answer rating: 100% (QA)

If the insurer uses the replacement cost less depreciat... View the full answer