The value of business personal property at Jennifer's business fluctuates periodically, which is due largely to fluctuations in the value of inventory on hand. Jen- nifer's property insurance policy requires the periodic reporting of business personal property. The limit of insurance is $500,000. Jennifer believes she can save money by underreporting the value of inventory. Last period, she reported only $200,000 when the actual value was $400,000. Shortly after filing the last report, the value of the inventory increased to $500,000. The inventory was totally destroyed when a fire occurred. Ignoring any deductible, what is the amount that Jennifer's insurer will pay? Explain your answer.