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A House with a Replacement Value of $110,000 Is Currently

question 44

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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.


Definitions:

Life Estate

A legal arrangement where an individual has the right to use a property for their lifetime, but does not own the property outright.

Conveys

Transfers ownership or title of property or rights from one person or entity to another.

Nonpossessory Interest

In the context of real property, an interest that involves the right to use land but not the right to possess it.

Easement

A right granted to use another's property for a specific purpose, such as right of way or utility installation.

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