Homeowners Policy (HO)Question 117 of 474
To receive full replacement cost on a dwelling loss under a standard HO-3, the insured must insure the dwelling to at least what percentage of its full replacement cost?
a.100%
b.50%
c.80%
d.60%
Explanation
The 80% insurance-to-value requirement applies to dwelling replacement cost. If the dwelling is insured to at least 80% of full replacement cost at the time of loss, the insurer pays replacement cost up to the limit; below 80%, the insurer pays the greater of actual cash value or a coinsurance penalty calculation.
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