In 2001,Tom purchased a home with a fair market value of $100,000.At the same time,he also purchased a valued policy with a face amount of $100,000 to insure the house against various risks,including fire.In 2002,the house was destroyed by fire.The fair market value of the house at the time of the fire was $150,000.What is Tom entitled to under the policy?

Question

Quizplus · Accepted Answer

If real property insured under a valued policy is destroyed,the insured is entitled to recover the face amount of the policy regardless of the property's fair market value.

In 2001,Tom Purchased a Home with a Fair Market Value