Eric and Lisa Lambert are purchasing a home for the first time.Their insurance company wants them to insure at least ________ of the home's full replacement cost.
A)70%
B)75%
C)80%
D)85%
E)90%

Question

Quizplus · Accepted Answer

Insuring at least 80% of the home's full replacement cost is the industry standard recommended by most insurance companies. This is because it ensures that the policyholder will receive adequate coverage in the event of a loss, while also allowing for some flexibility in the event that the cost of rebuilding the home exceeds the estimated replacement cost. Choosing a lower percentage, such as 70% or 75%, may result in inadequate coverage in the event of a loss, while choosing a higher percentage, such as 85% or 90%, may result in paying for more coverage than necessary.

Eric and Lisa Lambert Are Purchasing a Home for the First