How much will an insured receive for a roof replacement costing $2,000 if the actual cash value of the roof is determined to be $750 under a DP-3 form?

In this scenario, the insured is looking to replace a roof that has an actual cash value (ACV) of $750. Under a DP-3 (Dwelling Property 3) form, which provides coverage for personal property on an actual cash value basis, the payment to the insured would be the lesser of the replacement cost or the actual cash value.

While the replacement cost for the roof is $2,000, the compensation that can be claimed is based on its actual cash value, which is determined to be $750. Therefore, the insured would receive the amount that reflects the depreciated value of the roof rather than the full replacement cost.

In this case, the effective reimbursement is directly tied to that value. The calculation used is that the insured will receive the full actual cash value of $750, not the cost to replace the roof, as the principle of "actual cash value" means factoring in depreciation.

As such, the selected answer should accurately reflect this principle under the insurance policy reaffirming that the insured will receive the actual cash value, leading to the understanding that the insured cannot receive more than what the roof is deemed to be worth at the time of loss or claim.