Homeowners Insurance Policy Options: Replacement Cost Coverage

To ensure the rebuilding of the home exactly as it was, regardless of the actual cost (correct)

To reduce the policyholder's premium payments

To provide additional coverage for personal property

To limit the policyholder's liability in case of a loss

It only applies to the dwelling (correct)

It only applies to personal property

It provides limitless coverage for any type of loss

It is limited to 10% of the policy limit

The policyholder must have a minimum deductible of $1,000

The policyholder must have a separate policy for personal property

The policyholder must have a flood insurance policy

The policyholder must allow the insurer to set and approve the amount of replacement cost coverage (correct)

<p>Many insurers were figuratively and literally burned by their guarantees of limitless insurance during the early 1990s</p> Signup and view all the answers

<p>25% to 50% of the policy limit</p> Signup and view all the answers

<p>Guaranteed replacement cost provides limitless coverage, while extended replacement cost provides limited coverage up to a certain amount</p> Signup and view all the answers