How much will Bert and Maggie's insurer pay to replace their detached garage valued at $35,000?

To accurately determine how much an insurer will pay to replace Bert and Maggie's detached garage valued at $35,000, it's essential to consider the coverage limits and potential conditions outlined in homeowners' or property insurance policies.

In many standard policies, replacement cost coverage applies, meaning the insurer typically would replace the structure without depreciation affecting the payout, as long as the coverage was adequate and aligned with the actual replacement cost. However, if the dwelling coverage or building ordinance coverage is insufficient or not fully accounted for, this could lead to a lower payout.

In this case, if the insurer pays out $30,000 for the replacement, it might suggest that there are specific caps or conditions on the coverage provided. For instance, there may be a limit on the amount that can be claimed for detached structures, or other factors that have influenced the valuation or reimbursement process.

This amount also indicates that while the garage was valued at $35,000, there might have been costs associated with the replacement that were not fully covered under the policy, resulting in the final payout being $30,000. It's crucial for agents and policyholders to understand any limits or clauses in their insurance contracts that could affect how much the insurer pays.