A homeowner's insurance policy that includes a provision for __________ would provide the homeowner with enough cash to replace the items lost.
A) actual book value protection
B) cash in lieu of coverage
C) guaranteed replacement cost
D) full collateral damage protection

Question

Quizplus · Accepted Answer

Guaranteed replacement cost is a provision in a homeowner's insurance policy that provides the homeowner with enough cash to replace the items lost without considering depreciation. This means that the policy provides protection for the actual cost of replacing the item with a similar new one. It is the best option as it ensures that the homeowner is adequately compensated for their losses. The other options, actual book value protection, cash in lieu of coverage, and full collateral damage protection, do not guarantee full reimbursement for the loss suffered.

A Homeowner's Insurance Policy That Includes a Provision for __________