West Virginia Adjusters Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Disable ads (and more) with a premium pass for a one time $4.99 payment

Question: 1 / 175

Jack's home is valued at $950,000. How much insurance does he need to carry on his home in order to be fully insured under a typical insurance policy?

$600,000

Jack's home is insured based on the cost to rebuild the home, not its market value. Since the answer choices are all lower than the home's value, it can be inferred that Jack's home is over-insured. Insuring for the market value of the home may result in paying more for premiums, and not covering any potential rebuilding costs in the event of a disaster. Therefore, the correct and most cost-effective option for Jack is to insure his home for $600,000, ensuring it is fully covered without overpaying for excess insurance.

Get further explanation with Examzify DeepDiveBeta

$760,000

$800,000

$950,000

Next

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy