I think that the insurance coverage amount should be based on the appraisal value of the house. Appraisal value is an evaluation of the value of property based on a given point in time. This evaluation is done by an appraiser who is chosen by the lender.
Answer:
C
Explanation:
If you look at the picture, you will see why it is C. It says D, but the multiple choices are differently ordered and it is kind of differently worded.
But in conclusion, the answer is C.