The replacement cost of a home covered under the HO-3 policy is $100,000. Assume the home is insured for $50,000 and a $10,000 loss occurs (replacement cost). Also assume depreciation is set at 10 percent. Assume that there is no deductible

How much will the insured recover if repaired?
A) $9,000
B) $10,000
C) $8,000
D) $6,250

A

Business

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What will be an ideal response?

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