Tom is planning to build a home. He is weighing many factors, includin

Tom is planning to build a home. He is weighing many factors, including construction materials, location, and other considerations.

Which of the following statements is true with regard to homeowners insurance and Tom’s new home?
A) The higher the construction costs are in the area, the lower Tom’s homeowners insurance premiums will be.
B) The lower the homeowners deductible selected, the lower the premium will be.
C) Older homes cost more to insure than newer homes.
D) A wood frame home costs less to insure than a brick home.

ANSWER

Answer: C