Andrew is applying for insurance for his new home. Which of the following is correct?

Select one:

A. He should use the replacement value method for settling claims to receive the full cost of repairing or replacing his personal belongings.

B. He should insure the building for 75% of its replacement cost.

C. He should base the amount of insurance on the price he paid for it.

D. His insured amount should remain the same as long as he lives in his house.

E. His personal belongings should be covered with his home at 125% of his home's insured amount.