How much coverage would be provided under a standard homeowner's cash value policy if, during an unusually heavy rain, the basement becomes full of water and an antique dresser from the 1860s is destroyed? The dresser was purchased for $1300 ten years ago and was recently appraised at $2600, and you recently received an offer from an antique collector for $3100. How much would be received from your insurance company to cover this loss?

Question

Quizplus · Accepted Answer

A standard homeowner's policy typically does not cover damage caused by flooding or water entering the home from the ground level, including basement flooding. Therefore, no coverage would be provided for the loss of the antique dresser in this scenario.

How Much Coverage Would Be Provided Under a Standard Homeowner's