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Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased,
Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased, even though the policy required coverage of 80% of the replacement cost. Last month, he had a kitchen fire, which caused damages.
Step 1: Calculate the Replacement Cost
Step 2: Calculate the % Amount Covered
Amount of Loss - $75,000
Deductible - $500
Amount of Insurance Actually Carried - $150,000
% Percentage Amount Needed - 80%
Replacement Value - $200,000
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