Jennifer and Chad have a homeowner's policy with contents replacement-cost coverage for personal property up to 50 percent of the insurance on their home.What will the insurance company pay for their stolen property under the following situation?
Insured value of house
$90,000
Deductible
$500
Actual cash value of stolen property
$20,000
Replacement value of stolen property
$35,000

A) $19,500
B) $34,500
C) $35,000
D) $44,500

Question

Jennifer and Chad have a homeowner's policy with contents replacement-cost coverage for personal property up to 50 percent of the insurance on their home.What will the insurance company pay for their stolen property under the following situation?
Insured value of house
$90,000
Deductible
$500
Actual cash value of stolen property
$20,000
Replacement value of stolen property
$35,000
​
A) ​$19,500
B) ​$34,500
C) ​$35,000
D) ​$44,500

Quizplus · Accepted Answer

The insurance company will pay the replacement value of the stolen property minus the deductible. Therefore, $35,000 - $500 = $34,500.

Jennifer and Chad Have a Homeowner's Policy with Contents Replacement-Cost