Cheyenne has a home insured for $300,000. it would cost $320,000 to rebuild her home. if she has home insurance that provides personal property coverage at 70% of value, how much of her household belongings would be covered? a $320,000
b $224,000
c $300,000
d $120,000
e $210,000

option (e) $210,000

Explanation:

Data provided in the question:

Amount for which the home is insured = $300,000

Cost to rebuild the home = $320,000

Personal property coverage provided = 70% of value

Now,

The value of the property will  be the amount for which it has been insured irrespective of the amount spent on rebuilding the property

Therefore,

Household belongings that would be covered will be

= 70% of $300,000

or

= 0.70 × $300,000

= $210,000

Hence,

The correct answer is option (e) $210,000

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