medium · Certified Financial Planner Professional Conduct

The Whitaker family home has a replacement cost of 500,000. They carry 350,000 of insurance under an HO-3 policy. A kitchen fire causes 40,000 in covered damages.

Disregarding any deductible, how much will the insurance company pay?

  1. 40,000
  2. 35,000
  3. 28,000
  4. 350,000

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