Amy has a National Flood Insurance Program (NFIP) policy on her home, which has a current replacement cost of $500,000. She has a $250,000 limit of flood coverage on the home because that is the maximum amount of coverage available from the NFIP. Amy's home sustains flood damage valued at $300,000 on a replacement cost basis and $200,000 on an actual cash value basis. Ignoring deductibles, Amy's NFIP should pay $__________ for the damage to her building?
(Search Chapter 6)
a. $100,000
b. $150,000
c. $180,000
d. $250,000