Mike and Susan built their “dream home.” They insured their home for i

Mike and Susan built their “dream home.” They insured their home for its full replacement cost.

They also added an endorsement that will pay up to an additional 20 percent of the policy limit in case the cost of rebuilding the home after a loss is greater than the policy limit. The basis under which Mike and Susan insured their home is called
A) actual cash value.
B) valued policy coverage.
C) extended replacement cost.
D) guaranteed replacement cost.

ANSWER

Answer: C