Florida Insurance Claims Adjuster License Practice Exam 2025 - Free Insurance Claims Adjuster License Practice Questions and Study Guide

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Question: 1 / 400

A flood loss for a principal residence occupied 80% of the year would be paid at:

80% coinsurance

Replacement Cost

Replacement Cost is the most appropriate coverage option for a flood loss for a principal residence. This option ensures that the homeowner is reimbursed for the cost to replace the damaged property with new materials of like kind and quality.

Option A, coinsurance, would only cover 80% of the cost of the damage, leaving the homeowner responsible for the remaining 20%.

Option C, ACV (Actual Cash Value), takes into account the age and condition of the property, resulting in a lower payout that may not cover the full cost of replacement.

Option D, Valued Policy, has a predetermined amount that the insurance company will pay in the event of a loss, which may not accurately reflect the actual cost of replacement.

Overall, Replacement Cost provides the most thorough coverage in the event of a flood loss for a principal residence.

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ACV

Valued Policy

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