You have recently inherited a sum of money.You are purchasing an old Victorian home which was built in 1856.The type of insurance needed on the house would be
A)HO-1.
B)HO-4.
C)HO-6.
D)HO-8.

Question

Quizplus · Accepted Answer

The best choice would be HO-8, also known as the Modified Coverage Form. This is because the Victorian home is an older property and would not meet the replacement cost requirements for other policies. HO-8 provides coverage for the actual cash value of the property, which takes into account depreciation due to age and wear and tear. It also covers specific perils such as fire, lightning, and wind damage, but excludes others such as water damage and theft. It is a good option for those who own historic or older homes that would be difficult to replace at current market values.

You Have Recently Inherited a Sum of Money