What Is the Difference Between Replacement Value and Actual Value

question 67

Multiple Choice

What is the difference between replacement value and actual value for personal property insurance?

• A)Actual value is the cost to replace an item.
• B)Replacement value is the amount you could get for selling the item at a garage sale.
• C)Replacement value is typically the current retail cost to replace the item.
• D)Actual value is typically greater than replacement value.

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Definitions:

Informative or Persuasive

Refers to communication that either aims to educate the audience about something or convince them to adopt a certain viewpoint or behavior.

Solving Problems

The process of identifying issues and implementing solutions to overcome challenges or obstacles.

Advertising Message

The core idea or theme communicated through an advertisement to persuade potential customers.

Consumers

Individuals or groups that purchase goods and services for personal use.