Your home insurance provides for replacement value for personal property losses.If your china hutch (ten year depreciation)was vandalized and completely destroyed and cost $400 four years ago,but a new one will cost $600,how much will the insurance company pay?

Question

Quizplus · Accepted Answer

Since the insurance policy provides for replacement value for personal property losses, the insurance company will pay the cost of a new replacement item, which in this case is $600. The ten-year depreciation and the cost of the original item are irrelevant, as the policy covers the replacement value.

Your Home Insurance Provides for Replacement Value for Personal Property