If You Purchase a Homeowner's Policy with Guaranteed Replacement Cost

question 77

True/False

If you purchase a homeowner's policy with guaranteed replacement cost or an extended replacement cost,your personal property will be replaced even if it costs more than policy limits.

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Definitions:

FDIC

The Federal Deposit Insurance Corporation, an independent agency of the United States government that protects the funds depositors place in banks and savings associations.

Insolvent Banks

Financial institutions that are unable to meet their obligations or debts as they become due because their liabilities exceed their assets.

Consumer Use

The utilization of goods and services by individuals for personal or household purposes, rather than for business or professional needs.

Credit Cards

Payment cards issued by financial institutions that allow cardholders to borrow funds with which to pay for goods and services with the condition of paying back the borrowed money, plus interest, as well as agreeing to any agreed charges.