Even though homeowners are eligible for reimbursement on a full replacement-cost basis if they keep their homes insured for at least 80 percent of the amount that it would cost to build them today,__________ can cause the actual amount of coverage to fall below 80 percent.
A)the replacement cost
B)inflation
C)the insurance premium
D)deductibles

Question

Even though homeowners are eligible for reimbursement on a full replacement-cost basis if they keep their homes insured for at least 80 percent of the amount that it would cost to build them today,__________ can cause the actual amount of coverage to fall below 80 percent. ​
A)the replacement cost
B)inflation
C)the insurance premium
D)deductibles

Quizplus · Accepted Answer

Inflation can cause the actual amount of coverage to fall below 80 percent if the homeowner does not periodically increase their coverage to account for rising building costs.

Even Though Homeowners Are Eligible for Reimbursement on a Full