You have cash value coverage for your personal property on your homeowner's policy.Your camera cost $300 eight years ago had a life expectancy of 10 years.The camera was stolen,and a new one will cost $100.How much will the insurance company pay?

Question

Quizplus · Accepted Answer

Cash value coverage takes into account depreciation. The camera had a life expectancy of 10 years and was 8 years old, so it had 2 years of life left. The depreciation is 80% (8/10 years), so the insurance will pay 20% of the original cost, which is $60.

You Have Cash Value Coverage for Your Personal Property on Your