Darla purchased an unendorsed Homeowners 3 policy. While the policy was in force, a fire occurred that destroyed a living room set. The living room set cost $4,000 new, but was 25 percent depreciated when the loss occurred

Replacement furniture will cost $4,400. Assuming no deductible, how much will Darla receive from her insurer?
A) $3,000
B) $3,300
C) $3,400
D) $4,400

Answer: B

Business

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