medium · Certified Financial Planner Risk Management

The Ishikawa family home has a replacement cost of $800,000. They carry $500,000 of Coverage A with an 80% coinsurance requirement and a $5,000 deductible. A fire causes $100,000 of damage.

What is the total recovery from the insurance company?

  1. $73,125
  2. $57,500
  3. $74,218
  4. $95,000

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