A dwelling with a replacement cost of $150,000 was insured under a Homeowners 3 policy for $100,000 at the time the roof was destroyed by a windstorm. The actual cash value of the loss was $9,000, but it will cost $12,000 to replace the roof

Ignoring any deductible, what will the insurer pay to settle this loss?
A) $8,000
B) $9,000
C) $10,000
D) $12,000


Answer: C

Business

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