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Lonnie and Paula Have a Homeowner's Policy with $75,000 Coverage

Question 188

Multiple Choice

Lonnie and Paula have a homeowner's policy with $75,000 coverage and a $250 deductible.Their home recently suffered extensive fire damage in the amount of $50,000.Assuming the replacement value of the home was $85,000,how much will the insurance company pay on this loss?


A) $74,750
B) $50,000
C) $49,750
D) $44,750

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