A building was purchased for $350,000 and insured under a $300,000 fire insurance policy containing an 80% coinsurance clause. Several years later, the building, having a fair market value of $500,000, sustained fire damage of $40,000. 

What is the amount recoverable from the insurance company?

Answer rating: 100% (QA)

In this case the insurance policy contains an 80 coinsurance clause This means that the owner is req... View the full answer