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Your client EJ Kwak has coverage of $90,000 on her own dwelling. The replacement value of the dwelling is $125,000. The policy coinsurance requirement is

Your client EJ Kwak has coverage of $90,000 on her own dwelling. The replacement value of the dwelling is $125,000. The policy coinsurance requirement is 80%. EJ has chosen a $500 deductible. 


  1. Calculate the amount of loss reimbursement she should receive for each of the following losses. 

  2. A. The amount of the loss of 60,000. 

B. The amount of the loss is 90,000. 

  1. C. The amount of the loss is 120,000. Now assume that EJ increases the amount of coverage to 105,000. To offset some of the premium and increase, she chose to increase the deductible to $1050. The policy coinsurance requirement is 80%. The replacement value of the drought dwelling is 125,000. 

Calculate the amount of loss reimbursement for each of the following losses. 


  1.  A. The amount of the loss is 90 
  2. B. The amount of the loss is 105,000. The amount of the loss is 120,000 

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