Answer: He will receive only $55080 against the fire insurance that caused damage the property.
Explanation:
Since we have given that a house worth $250,000 has a coinsurance clause of 90 percent .
But the owner insure the property for $191,250.
That means the owner does not insure the property for his full value ,
Amount incurred on fire that caused damage =$80,000
Amount he will receive against his insurance is given by
[tex]80000\times \frac{90}{100}\times \frac{191250}{250000}\\\\=\$55080[/tex]
Hence, He will receive only $55080 against the fire insurance that caused damage the property.
Answer:
$68,000 will be received from insurance
Step-by-step explanation:
250,000*.9=225000
$191,250/225,000=.85
.85*80,000=$68,000
This is the correct answer
