Ace the Florida Insurance Claims Adjuster Test 2025 – Jumpstart Your Adjusting Adventure!

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Question: 1 / 400

What condition must be met in a HO Policy for replacement cost to settle the loss?

The insured must replace the item lost or damaged

All of these answers are correct

The insured must file the claim within 10 days

The insured must carry insurance of at least 80% of the cost to replace the dwelling

In order for replacement cost to settle a loss in a HO Policy, the insured must carry insurance that covers at least 80% of the cost to replace the dwelling. This means that the insured must have adequate coverage to fully replace the damaged or lost item.

Note that option A may seem correct, but it is not specific enough. It does not indicate that the insurance must cover at least 80% of the replacement cost. Option B is incorrect because not all answers are correct, only option D is correct. Option C is also incorrect as there is no specific time frame to file a claim for replacement cost coverage.

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