How much Coverage A does the insured need to qualify for replacement cost coverage if the replacement value is $60,000?

To qualify for replacement cost coverage under a homeowners insurance policy, the insured typically needs to maintain a certain percentage of the dwelling's replacement value as Coverage A. In many cases, this requirement is around 80% of the replacement cost.

Given a replacement value of $60,000, to calculate the minimum needed Coverage A amount for the insured to qualify for replacement cost coverage, you would take 80% of the replacement value. This can be determined by multiplying $60,000 by 0.80, which equals $48,000.

This calculation indicates that if Coverage A is maintained at $48,000 or higher, the insured would be eligible for replacement cost coverage in the event of a loss. So, maintaining Coverage A at this level helps ensure that the insured can fully recover for damages under their insurance policy based on the replacement cost principle.