Application of coinsurance to a property policy: In each of the following questions the policy contains an $80\%$ Coinsurance Clause$.$ You are an independent adjuster for Claims Pro, and have to determine how the insurer $($if at all$)$ pays and how much the insured $($if at all$)$ pays on the following property insurance claims;Question $5$: How would you handle this one? The value of the building is $$1,175,000.$ The amount of insurance is $$1,180,000.$

A$)$ The loss is $$136,500.$

$100\%$ of this would be covered as the insured chose to do more than $80\%$ coverage. The amount they would receive is $$136,500.$

B$)$ The building is a total loss. The building is totally destroyed.