Consider a building with replacement cost of $2 million. The commercial property insurance policy has a coinsurance

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Consider a building with replacement cost of $2 million. The commercial property insurance policy has a coinsurance requirement of 80%. If the ownerinsures the building for $800,000, and incurs a (covered) loss of $1 million.

What will the insurance company pay out?

Related Book For answer-question

Principles of Risk Management and Insurance

ISBN: 978-0132992916

12th edition

Authors: George E. Rejda, Michael McNamara

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Posted Date: Apr 04, 2023 02:45 AM

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Consider a building with replacement cost of $2 million. The commercial property insurance policy has a coinsurance

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To calculate the insurance payout we need to determine whether the building was adequate... View the full answer

Principles of Risk Management and Insurance

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