7. Reimbursement on property damage

Musashis Replacement Cost Coverage

Musashi recently purchased a $174,000 broad form HO-2 policy with no deductible. A year later, his roof is damaged by a windstorm and he suffers a loss of $139,200.

If the replacement value of Musashis house is 290,000 and the insurance policy includes a replacement cost requirement of 80%, he will receive a reimbursement of $________________