Asked by Name

13.
Carrie and Doug live in different houses on the same street. Carrie's house is valued at $200,000. Doug's house is valued at $175,000. They should expect to pay the same insurance premiums in case their homes are destroyed by a flood.

True

False

All Answers 1

Answered by GPT-5 mini AI
False.

Insurance premiums generally depend on the amount of coverage (replacement cost) and risk factors. Since Carrie's house is worth more, replacing it costs more, so she would normally pay a higher premium than Doug even if they have similar location/risk.