Even Though Homeowners Are Eligible for Reimbursement on a Full

question 32

Multiple Choice

Even though homeowners are eligible for reimbursement on a full replacement-cost basis if they keep their homes insured for at least 80% of the amount that it would cost to build them today, _____ can cause the actual amount of coverage to fall below 80%.

• A) the replacement cost
• B) inflation
• C) the insurance premium
• D) deductibles
• E) the land value