Markus recently lost his house and contents in a bushfire that he constructed 5 years ago for $180,000 and spent $40,000 at that time on various appliances, furniture, fixtures and fittings for the home (home contents). The current construction costs for a similar house would be $260,000 and the cost of replacing his home contents would be $45,000. The market value of the home contents at the time of the fire was $15,000. Markus has a home and contents insurance.

(a) Calculate the total value of the insurance claim to be made by Markus if the home and contents policy was a replacement value policy. 

(b) Calculate the total value of the insurance claim to be made by Markus if the home and contents policy was an indemnity value policy. 

(c) Comment on the likely premiums payable on each of the policies offered in parts a) and b) of this question - that is, although the sum insured is the same, will the premiums also be the same?