Zach is applying for insurance for his new home.Which of the following is correct?

Question

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When insuring a home, it is important to insure the building for its replacement value, which is the cost to rebuild or repair the home in the event of a loss. This ensures that Zach will receive the full cost of repairing or replacing his home if it is damaged or destroyed. Insuring the home for the price he paid (A) or using the actual cash value method for settling claims on personal belongings (C) may not provide adequate coverage. There is no automatic coverage for personal belongings at 125% of the home's insured amount (D). Zach may need to adjust his insured amount if there are changes to the home or if he acquires additional belongings, so his insured amount may not remain the same (E).

Zach Is Applying for Insurance for His New Home