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A fire insurance police on a $240,000 home contains an 80% coinsurance clause. If the homeowner has $180,000 of coverage and suffers $90,000 worth of
A fire insurance police on a $240,000 home contains an 80% coinsurance clause. If the homeowner has $180,000 of coverage and suffers $90,000 worth of damages in a fire, find the amount that the insurance company will pay.
A: $83,500
B: $84,000
C: $84,375
D: $90,000
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