Exam DISC-IA Practice Question 436
Study guide: Exam DISC-IA
A homeowner's HO-3 carries a personal property replacement cost endorsement. A fire destroys her television, which would cost $2,000 to replace and had an actual cash value of $900. She has not yet bought a new one. Which statement describes her settlement, before the deductible?
- A) She receives $2,000 now, because the endorsement removes the deduction for depreciation
- B) She receives $900, and the endorsement adds nothing because televisions are excluded from it
- C) She receives $900 now, and can claim the remaining $1,100 once she replaces the set
- D) She receives nothing until she replaces the set, and then $2,000
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