Question

PLZ HELP . LIMITED TIME. WILL GIVE BRAINLIEST A house worth $180,000 has a coinsurance clause of 75 percent. The owners insure the property for $101,250. They then have a loss that results in a $50,000 claim. They will receive $ ____.00 from insurance.

Answer 1

Coin insurance formula is (loss)(limit of insurance / Actual Cash Value x Coinsurance%) = Loss settlement. Now I'm not an expert in this, but if you follow this formula you'll see they will recieve $21093.75. Please tell me if I got it wrong.

Hope this helps :)

Answer 2

Answer:

He will receive $21093.75 only.

Explanation:

Given,

Cost of house is $180,000

Also, coinsurance clause of house is 75% ,it means house is not fully insured.

Amount the owner insured for the property = $101,250.

Amount he lost in damage = $50,000

(loss)[(limit of insurance) ÷ (ACV × Coinsurance %)]= Loss Settlement

Amount he will receive from insurance is given by

So, he will receive $21093.75 only.