Answer:
E) $210,000
Explanation:
In his case, Cheyenne has a policy that covers actual cash value which means that the insured policy is valued by a percentage of the insured amount. In this case, the policy covers 70% of the insured amount = $300,000 x 70% = $210,000.
The other method valuing insured property is the replacement cost which considers the value of replacing an existing construction.
