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Homeowner’s Insurance

Frank carries an H0-3 policy with $400,000 of coverage and a $1,000 deductible. It would cost $600,000 to rebuild Frank’s house. How much will his insurance company pay on a $100,000 claim related to a fire that started in Frank’s kitchen?

  1. $79,000
  2. $82,333
  3. $83,333
  4. $99,000