Even Though Homeowners Are Eligible for Reimbursement on a Full

question 19

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 percent of the amount that it would cost to build them today,__________ can cause the actual amount of coverage to fall below 80 percent. ​

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

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Definitions:

Illegal

Activities or actions that are forbidden by law and subject to legal penalties.

Higher Value Use

Utilizing resources or assets in a way that yields the most benefit or profit.

Willing To Pay

The maximum amount a consumer is prepared to spend on a good or service, reflecting their perceived value or utility.

Price Ceilings

Regulatory limits set on the price that can be charged for certain goods or services, intended to protect consumers from excessive rates.