Question 18 • 26-27 Ignite Financial Literacy Personal Finance - EL3403
Increasing the total coverage means the insurer would pay more if the home were damaged, so it generally increases the premium rather than lowering it. A higher deductible, removing replacement-cost coverage, or reducing policy riders can each reduce the insurer’s potential payout and may lower the premium. Therefore, increasing the total coverage will not help Robert lower his premium.
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