One is more likely to need to raise the standard 50 percent limit on personal property coverage when he or she selects contents replacement-cost protection rather than actual-cash-value protection.

Question

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Contents replacement-cost protection pays the cost to replace your belongings at today's prices, while actual-cash-value protection pays only for the depreciated value of your belongings at the time of loss. Since replacement-cost protection tends to result in higher payouts, it's more likely to require raising the standard limit on personal property coverage.

One Is More Likely to Need to Raise the Standard