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Jerome Insured His Home for $120,000

Question 36

Multiple Choice

Jerome insured his home for $120,000. He purchased it for $125,000 and the recent fair market value is $110,000. He recently had a kitchen fire that extended its damage to the foundation. It looks like his home is beyond repair. What is the most he can recover from his insurance policy?


A) $110,000
B) $115,000
C) $120,000
D) $125,000

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