Victoria has a homeowner's policy with personal property coverage of 50 percent of insurance on her home.What will the insurance company pay for her stolen property under the following situation?

Contents replacement-cost coverage
A)$34,500
B)$39,500
C)$44,500
D)$45,000

Question

Victoria has a homeowner's policy with personal property coverage of 50 percent of insurance on her home.What will the insurance company pay for her stolen property under the following situation?
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Contents replacement-cost coverage
A)$34,500 
B)$39,500 
C)$44,500 
D)$45,000

Quizplus · Accepted Answer

We do not have enough information about the insurance on Victoria's home to determine the total coverage amount. However, since Victoria's personal property coverage is 50% of the insurance on her home, we can calculate this amount based on the replacement cost coverage for her stolen property.

Assuming that the replacement value of her stolen property is $79,000, the insurance company would pay 50% of this amount, or $39,500, for her stolen property. Therefore, the best choice is B.

Victoria Has a Homeowner's Policy with Personal Property Coverage of 50