How much would you receive with actual cash-value coverage for a four-year-old sofa destroyed by fire? The sofa would cost $900 to replace today, whereas. it cost $800 four years ago and had an estimated life of 8 years.

How much would you receive with actual cash-value coverage for a four-year-old sofa destroyed by fire? The sofa would cost $900 to replace today, whereas. it cost $800 four years ago and had an estimated life of 8 years.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter10: Protecting Your Property

Section: Chapter Questions

Problem 4FPE

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Concept explainers

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.

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How much would you receive with actual cash-value coverage for a four-year-old
sofa destroyed by fire? The sofa would cost $900 to replace today, whereas. it cost
$800 four years ago and had an estimated life of 8 years.

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