# R lives in a small rural town and bought a home a few years ago for \$75,000. If the home were completely destroyed it would cost \$150,000 to rebuild. Since R would probably replace this home by buying another home in town for \$80,000, that is the price R wants to insure the current home for. This method of insuring the home is known as:

Insurance

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## R lives in a small rural town and bought a home a few years ago for \$75,000. If the home were completely destroyed it would cost \$150,000 to rebuild. Since R would probably replace this home by buying another home in town for \$80,000, that is the price R wants to insure the current home for. This method of insuring the home is known as:

a. Functional Replacement Cost

b. Market Value

c. Replacement Cost

d. Actual Cash Value