Lisa and Eric were notified that replacement cost coverage is in effect on a home owner's policy only if the home is insured for at least 80% of its replacement cost.This provision is known as the
A)Replacement Cost Rule.
B)80 Percent Rule.
C)Replacement Cost Provision.
D)none of the above.

Question

Quizplus · Accepted Answer

The provision that states a home must be insured for at least 80% of its replacement cost to have replacement cost coverage is commonly referred to as the "80 Percent Rule." Therefore, the best choice is B. Choices A and C are not commonly used terms to describe this provision, and D is not a valid answer.

Lisa and Eric Were Notified That Replacement Cost Coverage Is