Fred insured his house for its true value of $100 000 with insurer A and for $50 000 with insurer B.When the house was totally destroyed by fire,Fred was entitled to receive:

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Fred's total coverage is $150,000 ($100,000 from A and $50,000 from B), but the house's value is $100,000. The claim is proportionally divided based on the coverage amount from each insurer. Insurer A covers 2/3 of the total insurance ($100,000 of $150,000), and insurer B covers 1/3 ($50,000 of $150,000). Therefore, for a total loss of $100,000, A pays 2/3 ($66,667) and B pays 1/3 ($33,333).

Fred Insured His House for Its True Value of $100