[amp_mcq option1=”Actual cost validity” option2=”Actual cash value” option3=”Replacement cash value” option4=”Normal cost value” correct=”option3″]<\/p>\n
The correct answer is: C. Replacement cash value.<\/p>\n
Replacement cash value is the amount of money it would cost to replace an item at today’s prices, minus any depreciation. It is the most common method of valuing insured property.<\/p>\n
Actual cash value is the depreciated value of an item, or the amount of money it would cost to replace it at the time of loss, minus any depreciation. It is not as common as replacement cash value, but it may be used if the replacement cost is not available or if the insured chooses to use it.<\/p>\n
Normal cost value is the amount of money it would cost to replace an item at the time it was purchased, minus any depreciation. It is not commonly used, but it may be used if the insured chooses to use it.<\/p>\n
Actual cost validity is not a method of valuing insured property. It is a type of insurance policy that covers the cost of repairing or replacing an item, up to the actual cost of the item.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Actual cost validity” option2=”Actual cash value” option3=”Replacement cash value” option4=”Normal cost value” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"class_list":["post-32642","post","type-post","status-publish","format-standard","hentry","category-insurance","no-featured-image-padding"],"yoast_head":"\n