Homeowners InsuranceQuestion 118 of 158
Without a replacement cost endorsement, personal property under Coverage C is typically settled on what basis?
a.Actual cash value (replacement cost less depreciation)
b.Replacement cost without depreciation
c.Market value at the time of loss
d.Functional replacement cost
Explanation
Personal property under Coverage C is settled at actual cash value (ACV), which is replacement cost less depreciation, unless the insured purchases a replacement cost endorsement. The dwelling, by contrast, is settled at replacement cost when the 80% requirement is met.
Law Reference: ISO HO form loss settlementPractice all 158 questions free — no signup required.
Related questions on this topic
- Which of the following losses is EXCLUDED under a standard homeowners policy without an additional endorsement or separate policy?
- Damage caused by earthquake is generally covered under a standard California homeowners policy only when:
- 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?
- The standard mortgage clause requires the insurer to give the mortgagee written notice of cancellation at least how many days in advance?
- Under the standard homeowners Coverage C special limits, what is the typical sublimit for loss by THEFT of jewelry, watches, and furs?
- The Coverage C special sublimit for theft of FIREARMS on a standard homeowners policy is approximately:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California Personal Lines Insurance License Exam · How we review