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Suppose a policy provides like-kind replacement costs coverage for the dwelling and that $80,000 of coverage is purchased. How much will the insurer pay under each of the following scenarios (ignoring any deductible):

Loss Replacement Cost for the Dwelling at time of loss

$20,000 $100,000

80,000 100,000

20,000 130,000

80,000 130,000

Basic Finance, Finance

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