Seven years ago, Floy Cash purchased her home for $220,000. She made a down payment of $20,000 and took out a 30-year mortgage for $200,000. When she purchased the home, Floy purchased a homeowners policy that covers her home for $200,000. Home construction costs in Floy's area have increased by at least 10 percent during the past 7 years, but Floy has not increased her homeowners insurance limits. Floy's homeowners policy includes a standard mortgage clause that protects the mortgage lender's insurable interest in the home. All of the following statements concerning Floy's current situation are true, EXCEPT: (Search Chapter 1)
a. If Floy's home was insured to value 7 years ago, it is currently underinsured.
b. The insurance company will probably suggest Floy increase her insurance limits.
c. The mortgage lender is adequately protected by Floy's current policy.
d. The mortgage lender will probably request Floy to decrease her insurance limits.