The replacement cost of a home covered under the HO-2 policy is $100,000. Assume the home is insured for $50,000 and a $10,000 loss occurs (replacement cost). Also assume depreciation is set at 10 percent. Assume that there is no deductible.How much will the insured recover if repaired?

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The Answer of The replacement cost of a home covered under the HO-2 policy is $100,000. Assume the home is insured for $50,000 and a $10,000 loss occurs (replacement cost). Also assume depreciation is set at 10 percent. Assume that there is no deductible.How much will the insured recover if repaired?

The Replacement Cost of a Home Covered Under the HO-2