1. A house valued at 92000 was insured for 76000. The policy contained an 80 percent coinsurance clause. A flood caused damages of 78000.
A. How much insurance is needed?
B. How much will the company pay?
C. How Much will the owner pay?
2. Scott Abraham insured his house for 56000. The inurance policy has an 80% coinsurance clause. It also carries a 250 deductable clause, which means that the company will not pay for 250 of the loss. The house is valued at 85000. How much of a 5500 vandalism loss will the company pay?
3. Karen Balzen carries 89000 in tornado insurance on her house and garage. The policy has an 80% coinsurance clause and a 300 deductable clause. The present value of the house is 125000. How much of a 22,000 tornado loss will the company pay?