Replacement-cost coverage is the reimbursement of:
A)the cost of repairing or replacing damaged structures without deducting physical depreciation.
B)reasonable living expenses while the insured's house is being repaired.
C)the cost of damages caused by perils other than those mentioned in the policy.
D)the cost of defending the insured.
E)the increase in the deductible to reduce the amount of the insurance premium.

Question

Quizplus · Accepted Answer

Replacement-cost coverage reimburses the cost of repairing or replacing damaged structures without deducting physical depreciation. This means that the insured will be reimbursed for the full cost of repairing or replacing the damaged property, rather than the depreciated value.

Replacement-Cost Coverage Is the Reimbursement Of