Which of the following statements about buying homeowners insurance is true?
A)There is no reason to carry insurance for more than 80 percent of a dwelling's replacement cost.
B)The deduction for depreciation will be increased if a personal property replacement cost endorsement is purchased.
C)Premiums often can be reduced substantially by selecting a higher deductible.
D)There is little reason to compare cost since the lack of competition results in little price variation among companies.

Question

Quizplus · Accepted Answer

Premiums can often be reduced substantially by selecting a higher deductible, as the insured is assuming more risk. This can be a good option for those who are comfortable with a higher out-of-pocket expense in the event of a loss. However, it's important to make sure the deductible amount is still affordable in case of a claim. The other statements are false or misleading.

Which of the Following Statements About Buying Homeowners Insurance Is