Homeowners are eligible for reimbursement on a full replacement-cost basis only if they keep their homes insured for at least __________ of the amount that it would cost to build them today.
A)80 percent
B)20 percent
C)100 percent
D)50 percent

Question

Homeowners are eligible for reimbursement on a full replacement-cost basis only if they keep their homes insured for at least __________ of the amount that it would cost to build them today. ​
A)80 percent
B)20 percent
C)100 percent
D)50 percent

Quizplus · Accepted Answer

Homeowners are eligible for reimbursement on a full replacement-cost basis only if they keep their homes insured for at least 80 percent of the amount that it would cost to rebuild them today. This is known as the 80 percent rule. If a homeowner insures their property for less than 80 percent of its replacement cost, they may only receive partial reimbursements for any damage or losses sustained. Therefore, the best choice is option A) 80 percent.

Homeowners Are Eligible for Reimbursement on a Full Replacement-Cost Basis