The Disadvantage of Actual Cash Value Coverage of Personal Property

Multiple Choice

The disadvantage of actual cash value coverage of personal property compared to replacement cost coverage is that it

A) will reimburse you for replacement cost minus estimated depreciation.
B) will reimburse you for the cash value of a new item.
C) must be reported as a loss on your tax return.
D) does not have to be reported as a loss on your tax return.
E) none of the above.