Shemar bought a building two years ago for $700,000. The building is insured under a commercial package policy with limits of $700,000 on the building. The policy is written on a replacement cost basis with an 80% coinsurance requirement and a $2,500 deductible. The current replacement cost of the building is $1 million. If a fire in the building causes damage that will cost $80,000 to repair, what amount will the insurance company pay

Answer rating: 100% (QA)

to determine the amount the insurance company will pay Step 1 Calculate the coinsurance value The co... View the full answer