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Reimburses loses on an actual cash-value basis

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Reference no: EM131090123

Lizzy Richardson's home in New York City was recently gutted in a fire. Her living and dining rooms were completely destroyed, and the damaged personal property had a replacement value of $35,000. The coverage age of the damaged personal property was 5 years, and it's useful life was estimated to be 15 years old. What is the maximum amount the insurance company will pay Lizzy; assuming that it reimburses loses on an actual cash- value basis?

Reference no: EM131090123

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