The building was covered by a 300000 fire insurance policy


Question - Hart owned a building with a fair market value of 400,000. The building was covered by a 300,000 fire insurance policy containing an 80% coinsurance clause. What amount would Hart recover if a fire totally destroyed the building?

A) 0

B) 240,000

C) 300,000

D) 400,000

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Accounting Basics: The building was covered by a 300000 fire insurance policy
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