Property Insurance FundamentalsCâu 210 / 474
On a standard unendorsed homeowners form, how do the loss settlement bases for the dwelling and for personal property differ?
a.The dwelling is actual cash value, contents replacement cost
b.Both the dwelling and the contents settle at replacement cost
c.The dwelling is replacement cost, contents actual cash value
d.Both the dwelling and the contents settle at market value
Giải thích
The unendorsed homeowners form pays replacement cost for the dwelling but settles personal property at actual cash value, so contents are depreciated unless a replacement-cost-on-contents endorsement is added. The choice that reverses the two bases is the common mix-up. The market-value answer confuses what a buyer would pay with what it costs to repair or replace.
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- After paying a claim, an insurer's right to recover from the person who caused the loss is called:
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- A roof with a 20-year useful life is 15 years old when hail destroys it. Replacement cost is $16,000, the roof is settled at actual cash value, and the deductible is $1,000. The insurer pays:
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- Functional replacement cost settles a building loss by:
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