One is more likely to need to raise the standard 50 percent limit on personal property coverage when he or she selects replacement-cost protection rather than actual-cash-value protection.

Question

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Replacement-cost protection provides coverage for the full cost of replacing damaged or stolen items, while actual-cash-value protection only covers the current value of the items, taking into account depreciation. As replacement-cost coverage provides more comprehensive protection, it is more likely to require a higher limit on personal property coverage.

One Is More Likely to Need to Raise the Standard