An insured carries an unendorsed HO-2 policy. He has suffered a partial loss to his dwelling and the authorities have advised him that the property cannot be repaired and must be demolished. What will the insurer pay?

An insured carries an unendorsed HO-2 policy. He has suffered a partial loss to his dwelling and the authorities have advised him that the property cannot be repaired and must be demolished. What will the insurer pay?



The insurer will pay nothing


The replacement cost value of the entire structure


The cost of the value of the damaged property plus 10%


The actual cash value of the partial loss



Answer: The cost of the value of the damaged property plus 10%

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