medium · Certified Financial Planner Risk Management

The Strauss family owns a home and carries a homeowners policy with a 200,000 limit. The replacement cost of the home is 300,000.

If a fire causes 60,000 in damages, and the policy has an 80% coinsurance requirement, how much will the insurance company pay (ignoring any deductible)?

  1. 50,000
  2. 60,000
  3. 48,000
  4. 40,000

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