Q1. A Massachusetts renter has a personal property limit of $40,000 with replacement cost coverage and a$1,000 deductible. After a burglary, the actual cash value (ACV) of stolen items is $30,000, but replacement cost is$38,000. How much will the insurer pay if the renter replaces all items?

• ○$37,000 (Replacement cost minus deductible)
• ○$29,000 (ACV minus deductible)
• ○$38,000 (Full replacement cost, no deductible)
• ○$30,000 (ACV, no deductible)