Dwelling Policy (DP)Câu 276 / 474
A dwelling costs $300,000 to replace and is insured on a special form for $180,000 under an 80% loss-settlement condition. A partial building loss is settled:
a.At replacement cost, because this loss is only partial
b.At less than replacement cost; $240,000 was required
c.At market value, since the limit fell below that cost
d.At replacement cost, because a stated limit was purchased
Giải thích
The condition requires 80% of $300,000, or $240,000, and the owner carries $180,000. Falling short of that figure drops the settlement to the greater of actual cash value or the proportion of the repair cost that $180,000 bears to $240,000. Buying any limit does not earn replacement cost, and market value is not a settlement basis in these forms.
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Câu hỏi liên quan cùng chủ đề
- A dwelling insured on a basic form is damaged by fire. The building loss is settled on:
- A basic form dwelling loses a roof section that costs $12,000 to replace and has depreciated $4,000. Before any deductible, the policy pays:
- The broad and special dwelling forms differ from the basic form in that they settle:
- Why is theft of the insured's property not paid under an unendorsed dwelling policy?
- Burglars force a door on a dwelling insured on an unendorsed broad form and carry off a television. The policy pays for:
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