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Amanda [17]
3 years ago
11

1.A house worth $250,000 has an coinsurance clause of 90 percent. The owners insure the property for $191,250. They then have a

fire that causes $80,000 in damage. How much money will they receive from insurance?
2.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. How much money will they receive from insurance?
Mathematics
2 answers:
Arisa [49]3 years ago
8 0

1. Multiply the value of the house by the percent:

250,000 x 0.9 = 225,000

Divide the amount the owner insured by the clause amount:

191,250/225,000 = 0.85

Multiply that by the amount of damage:

0.85 x 80,000 = 68,000

They will receive $68,000

2. Follow the same steps as above:

180,000 x 0.75 = 135,000

101,250 / 135,000 = 0.75

0.75 x 50,000 = 37,500

They will receive $37,500

Oksi-84 [34.3K]3 years ago
6 0

Answer:

1. They will receive $72,000 in insurance.

2. They will receive $37,500 in insurance.

Step-by-step explanation:

1.Given that the coinsurance is 90 percent.

For the fire that caused a $80,000 in damage, 90 percent of $80,000 will be received in insurance.

90 percent of $80,000 will be received in insurance

90 percent of $80,000 = 0.9 * 80000

= 72,000

Therefore, they will receive $72,000 in insurance

2. The coinsurance is 75 percent, given that they have a loss that results in a $50,000 claim.

they will received 75 percent of $50,000

75 percent of $50,000 = 0.75 * 50000

= 37.500

Therefore, they will receive $37,500

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