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Mark owns a building that he insured for $750,000. The replacement cost of the building is $1,000,000. The actual cash value of the building is
Mark owns a building that he insured for $750,000. The replacement cost of the building is $1,000,000. The actual cash value of the building is $850,000. Mark's property insurance policy has an 80 percent coinsurance clause. Ignoring any deductible, if Mark's building is damaged by fire and the cost of repair is $100,000, how much will Mark receive from his insurer?
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