Exam DISC-IA Practice Question 423
Study guide: Exam DISC-IA
A dwelling is insured under an HO-3 (HO 00 03 05 11) for $200,000, more than 80% of its replacement cost. A windstorm causes damage costing $4,000 to repair, with an actual cash value of $2,800. The insured has not yet made the repair. Before the deductible, what can the insured collect now?
- A) $4,000, because the loss is less than 5% of the amount of insurance
- B) $4,000, because the dwelling is insured for at least 80% of replacement cost
- C) Nothing, because the insurer pays only once the repair is complete
- D) $2,800 now, and the $1,200 balance once the repair is complete
Answer this question and see the worked solution