Emmanuelle insures her home,a farm house,for $50 000 against loss by fire.The house has a market value of $ 100,000.A fire causes damage of $20 000 to the house.Emanuelle will be able to recover:

Question

Quizplus · Accepted Answer

Emmanuelle is under-insured, so she can only recover a proportion of the damage. The insurance covers 50% of the house's value ($50,000 out of $100,000), so she can recover 50% of the damage, which is $10,000.

Emmanuelle Insures Her Home,a Farm House,for $50 000 Against Loss