Which of the following policies is least likely to provide Replacement Cost coverage?

Prepare for the Property and Casualty Insurance Exam. Study with flashcards, multiple choice questions, hints, and explanations. Gain confidence for your test!

The Comprehensive Auto Policy is least likely to provide Replacement Cost coverage because it typically covers vehicles and their associated damages rather than property in the way that dwelling or homeowner policies do. Replacement Cost coverage is a provision that allows for the reimbursement of building or personal property claims based on the current cost to replace those items, without deducting for depreciation.

In contrast, dwelling fire policies and homeowner policies are specifically designed to protect residential properties and usually include Replacement Cost coverage options. The Broad Form Dwelling Policy also focuses on residential properties and generally offers more comprehensive coverage than a Basic Dwelling Fire Policy, which may have limitations regarding Replacement Cost provisions.

Since the Comprehensive Auto Policy pertains to automobiles, it typically emphasizes actual cash value rather than Replacement Cost, making it the least likely option to include this type of coverage.

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