How much would a homeowner receive with actual cash-value coverage and replacement cost coverage for a 3-year-old sofa destroyed by a fire? The sofa would cost $810 to replace toda whereas it cost $628 3 years ago, and it has an estimated life of 6 years. With actual cash-value coverage, the amount the owner would receive for the sofa would be $410. (Round to the nearest dollar.)

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Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.