If the amount of insurance carried is equal to at least 80 percent of the replacement cost of the damaged building at the time of loss full replacement cost is paid up to the limits of the policy with no deduction for depreciation. Replacement cost is the amount necessary to repair or replace the dwelling with the material of like kind quality at a current price. Insurance on Jack and Jane’s home should be increased to at least $200,000 (80% of the $250,000 replacement cost of the home) to comply with the replacement cost provision. Since the present coverages are inadequate, some changes should be made. An extended replacement cost or guaranteed cost endorsement could be added, which requires the home to be insured to $250,000. Alex inherited an emerald necklace and earrings, valued at $6,000, from a grandmother. Jewelry is covered only for a maximum of $1500 if the jewelry is stolen. Alex’s jewelry should be scheduled and specifically insured to its full value. Marty’s home business office contains a computer used solely for business, office furniture, file cabinets, and other business personal
If the amount of insurance carried is equal to at least 80 percent of the replacement cost of the damaged building at the time of loss full replacement cost is paid up to the limits of the policy with no deduction for depreciation. Replacement cost is the amount necessary to repair or replace the dwelling with the material of like kind quality at a current price. Insurance on Jack and Jane’s home should be increased to at least $200,000 (80% of the $250,000 replacement cost of the home) to comply with the replacement cost provision. Since the present coverages are inadequate, some changes should be made. An extended replacement cost or guaranteed cost endorsement could be added, which requires the home to be insured to $250,000. Alex inherited an emerald necklace and earrings, valued at $6,000, from a grandmother. Jewelry is covered only for a maximum of $1500 if the jewelry is stolen. Alex’s jewelry should be scheduled and specifically insured to its full value. Marty’s home business office contains a computer used solely for business, office furniture, file cabinets, and other business personal