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Question: 1 / 475

True or False: Replacement cost coverage for buildings and personal belongings is considered basic coverage under a Homeowners Comprehensive policy?

True

False

Replacement cost coverage for buildings and personal belongings is not considered basic coverage under a Homeowners Comprehensive policy. Instead, it is classified as a more comprehensive level of coverage typically included in enhanced policies. Basic or fundamental coverage often provides actual cash value (ACV) rather than replacement cost, which means that depreciation is factored into the payout.

Replacement cost coverage is designed to provide full compensation for the cost to replace damaged property without deducting for depreciation, which is a more beneficial form of coverage for homeowners. Therefore, stating that it is basic coverage is inaccurate, leading to the conclusion that the correct response is that the statement is false.

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Only for buildings

Only for personal belongings

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