question relates to a dp-1 policy on a rental home with a 50,000 coverage a. House has a life span of 50 years and is 25 years old. A fire occurs when the tenant goes to sleep smoking. A contractor estimates that it iwll cost 4000 to repair the building. Ignoring application of any deductible, what will the pollicy pay.
I figured that the age of the building and the tenant's negligence weren't applicable in this case and said that the full 4000 (less deductible) would be paid. The book says 2000.
Can someone explain why?
Merry Christmas ( and happy Hannukah) to all.
Larry Hering
I think that the life span always applies. In this case it is half. So the amount is / by 2.