Under a Multiple Insurance Clause, a Homeowner Who Insures a Home

question 60

True/False

Under a multiple insurance clause, a homeowner who insures a home for 80 percent of its value can recover only 80 percent of the cost for damage to it.

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Definitions:

Equity Trusts

Investment funds that hold a diversified portfolio of equities or stocks, managed by a trustee for the benefit of its beneficiaries.

Mortgage Trusts

Investment funds or trusts that pool investments in mortgage loans or mortgage-backed securities.

Construction Loans

Short-term loans provided to finance the building or renovation of a property, typically requiring interest-only payments during construction and full repayment upon completion.

Average Maturity

The weighted average of all the maturities of the bonds in a portfolio, reflecting the portfolio's sensitivity to interest rate changes.