Exam DISC-IA Practice Question 623
Study guide: Exam DISC-IA
A fire damages a shop insured under the BPP with the replacement cost optional coverage. The owner has not yet decided whether to rebuild and asks how the claim can be settled. Which statement is consistent with the optional coverage?
- A) The insurer must pay full replacement cost now, since depreciation is never deducted
- B) The owner must rebuild within 30 days or lose all coverage for the building
- C) Replacement cost applies to the shop's stock automatically, along with the building
- D) It may take actual cash value now and claim more after rebuilding, with notice in 180 days
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