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Joe owns a house on which he carries a $400,000 HO-3 policy. The replacement cost of the house is $600,000. A fire loss occurs and

  1. Joe owns a house on which he carries a $400,000 HO-3 policy. The replacement cost of the house is $600,000. A fire loss occurs and badly damages an attached garage that has a replacement cost of $10,000. How much can Joe collect under his HO-3 policy? show steps please

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