Your Building and Business Personal Property policy includes the following information:

You carry Building Coverage = $200,000 limit of insurance

You carry Business Personal Property = $75,000 limit of insurance

Your Deductible = $1,000

Coinsurance Percentage on Building = 80%

At the time of loss, it is determined that the replacement cost valuation of your building is actually $250,000

You incur a loss/damage as follows:

Building damage = $50,000

Business Personal Property = $10,000

Given this information, please calculate the following:

a- How much will the insurer pay for the building damage?

b- How much will the insurer pay for the business personal property damage?

Answer rating: 100% (QA)

a 80 of the replacement cost of the building 08 x 250000 200000 Since the limit of insurance for bui... View the full answer