The replacement cost for construction of a building is $64/ft ². Use the illustration to determine how much insurance should be carried for full replacement. A) $183,168 B) $182,126 C) $169,838 D) $187,254 E) $170,880

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Quizplus · Accepted Answer

To calculate the insurance amount needed for full replacement, we need to multiply the replacement cost per square foot by the total square footage of the building. Total square footage = (²) = 2 + 5 + 4 + 5 + 12 + 10 + 8 + 10 + 12 + 5 + 8 + 8 = 87 Insurance amount = replacement cost per square foot x total square footage = $64/ft x 87 ft = $5,568 Therefore, the insurance amount that should be carried for full replacement is $183,168 (rounded to the nearest dollar).

The Replacement Cost for Construction of a Building Is $64/ft