Property insurance should correspond to the actual value of the property for all of the following reasons except
A) if the property is insured for more, the insured will pay too high a premium.
B) no insurance means no compensation for loss.
C) if the property is insured for less, the insured will only receive partial compensation.
D) if the property is insured for less, there is a danger of being a co-insurer.
E) if the property is insured for more, there will be no compensation for loss.

Question

Quizplus · Accepted Answer

If the property is insured for more than its actual value, the insured may still receive compensation for loss, but it will be limited to the actual value of the property, not exceeding it.

Property Insurance Should Correspond to the Actual Value of the Property