What is the minimum insurance amount Jack needs to carry on his home valued at $950,000 to be fully insured?

To determine the minimum insurance amount Jack needs to carry on his home valued at $950,000 to be fully insured, we need to consider the concept of actual cash value or replacement cost based on a percentage coverage requirement typically found in homeowners insurance policies.

In Louisiana, the common guideline is that to avoid penalties in insurance claims and to ensure full reimbursement in a loss scenario, homeowners should insured their property at least at a specified percentage of its value. This percentage often ranges between 80% to 100%. If an insurance policy mandates coverage at 80% of the home's value for full replacement, Jack would need to carry at least $760,000 (which is 80% of $950,000).

Therefore, by ensuring coverage at this adjusted figure—a safeguard against underinsurance—Jack is aligning his policy with standard insurance practices that help protect him adequately against loss. This approach ensures he has a sufficient amount of coverage to receive the maximum benefits in case of a covered peril affecting his home.