Question
Stephanie owns a small warehouse that is insured under a commercial property insurance policy. The policy contains an 80 percent coinsurance clause. The warehouse sustained
Stephanie owns a small warehouse that is insured under a commercial property insurance policy. The policy contains an 80 percent coinsurance clause. The warehouse sustained a $50,000 loss because of fire. The replacement cost of the warehouse at the time of the loss is $400,000.
a) If Stephanie insured the warehouse for $250,000 under her commercial property insurance, what is the insurers liability, if any, for this loss?
Round your answer to the nearest dollar.
b) If Stephanie insured the warehouse for $320,000 under her commercial property insurance, what is the insurers liability, if any, for this loss?
Round your answer to the nearest dollar.
c) If Stephanie insured the warehouse for $380,000 under her commercial property insurance, what is the insurers liability, if any, for this loss?
Round your answer to the nearest dollar.
d) If Stephanie insured the warehouse for $420,000 under her commercial property insurance, what is the insurers liability, if any, for this loss?
Round your answer to the nearest dollar.
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