Question
You own a home with a market value of $400,000. Your home insurance policy has an 80% coinsurance clause. You buy $300,000 of property insurance.
You own a home with a market value of $400,000. Your home insurance policy has an 80% coinsurance clause. You buy $300,000 of property insurance. A tree falls on your house and you have a $50,000 of damages. How much will the insurance company pay for this claim? (assume no deductible)
| A. | $50,000 | |
| B. | $0 | |
| C. | $46,875 | |
| D. | $37,500 |
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Financial Reporting And Statement Analysis A Strategic Approach
Authors: Clyde P. Stickney, Paul Brown, James M. Wahlen
5th Edition
032418638X, 978-0324186383
