Tom is planning to build a home.He is weighing many factors,including construction materials,location,and other considerations.Which of the following statements is true with regard to homeowners insurance and Tom's new home?
A)The higher the construction costs are in the area,the lower Tom's homeowners insurance premiums will be.
B)The lower the homeowners deductible selected,the lower the premium will be.
C)Older homes cost more to insure than newer homes.
D)A wood frame home costs less to insure than a brick home.

Question

Quizplus · Accepted Answer

Older homes generally cost more to insure than newer homes because they are considered to be at higher risk for certain types of damage, and they may not be built to current building codes.

Tom Is Planning to Build a Home