Question

T/F a house with a replacement value of $110,000 is currently insured for $90,000. The house has suffered a $15,000 loss from windstorm damage. The insurance company will pay the full $15,000 less the deductible.

Answer 1

TRUE

Step-by-step explanation:

Replacement value or costs describes the amount an insurance company will pay if the property is insured, in the event that the insured property is stolen or destroyed. It is the amount of money it will cost to replace a property or asset. In this scenario, since the cost of damage is at an amount ($15000) lower than the amount ($90,000) that the property was insured for, the insurance company will pay the full amount for the damage less the deductibles.