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The replacement cost of a home covered under the HO - 2 policy is $ 1 0 0 , 0 0 0 . Assume the

The replacement cost of a home covered under the HO-2 policy is $100,000. Assume the home is insured for $50,000 and a $10,000 loss occurs (replacement cost). Also assume depreciation is set at 10% and a $500 deductible applies. How much will the insured recover if the damage is repaired? a. $9,000, b. $8,500, c. $5,937, d. $6,250.

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