Which of the following statements about mobile home insurance is (are)true?
I.Coverage for the mobile home may be written on either a replacement cost basis or an actual cash value basis,depending on how much the mobile home has depreciated.
II.An additional coverage pays,up to a specified dollar limit,for the cost of transporting the mobile home to a safe place when it is endangered by a covered peril.

Question

Quizplus · Accepted Answer

Both statements are true. Coverage for the mobile home may be written on a replacement cost basis, which means the insurer will replace the home with a new one of similar kind and quality, or an actual cash value basis, which means the insurer will pay the cost of replacing the home less depreciation. Additionally, mobile home insurance may include coverage for transportation costs to move the home to a safe location in the event of a covered peril.

Which of the Following Statements About Mobile Home Insurance Is