Common Insurance Policy Concepts.pptx Coinsurance and Inflation Stephen purchases a home in 2000 with a replacement cost of $200,000. He insures the home in 2000 for $168,000 Stephen suffers a $50,000 fire loss in 2014 The replacement cost of the home in 2014 is $350,000 (4.1% annual inflation) Stephen's homeowners limit in 2014 is still $168,00 What will the insurance company pay for Stephen's $50,000 fire loss? Assume a $500 deductible