Question: The 5 - year - old awning attached to Murray's house was destroyed in a windstorm and must be replaced. The awning, which was originally

The 5-year-old awning attached to Murray's house was destroyed in a windstorm and must be replaced. The awning, which was originally purchased for $4,000, was expected to last 10 years before needing replacement. It would cost $5,000 now to replace it with an identical awning. Ignoring any applicable deductible and assuming adequate limits, to settle the loss to Murray's awning based on the valuation provision in Murray's policy, the insurer should pay(Search Chapter 3) a. nothing. b. $2,000 c. $2,500. d. $4,000.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!