Which of the following statements about the additional coverage for damage to property of others in Section II of the homeowners policy is true?
A)The maximum amount of coverage is $25,000 per occurrence.
B)Payments are made on the basis of the replacement cost of the damaged property.
C)There is coverage for property damage arising out of a business engaged in on a full-time basis by an insured.
D)There is coverage for intentional property damage by any insured who is a teenager.

Question

Quizplus · Accepted Answer

Payments for the additional coverage for damage to property of others under Section II of a homeowners policy are typically made on the basis of the replacement cost of the damaged property, without deduction for depreciation. This ensures that the property can be repaired or replaced at current prices, providing a more favorable settlement for the insured.

Which of the Following Statements About the Additional Coverage for Damage