qt24

Erik's home has a replacement value of $800,000 (at the time of loss). Erik insured the home for $500,000 under the standard HO-3 policy. The roof of Erik's home was damaged by a windstorm. The replacement cost of the damaged roof is $64,000. The actual cash value of the loss is $52,000. Ha N much will Erik receive from his insurer to settle this claim? (assume no deductible) a. $51,200 b. $64,000 c. $50,000 d. $52,000 e. None of the above