The insurance carrier used by Wayne's Pool Service specifies 65% coinsurance. The company recently incurred $233,000 in damages from a tornado. The building was valued at $390,000, but was only insured for $209,000. What will the insurance company pay for the loss?

Question

Quizplus · Accepted Answer

The insurance company will pay 65% of the covered loss, which is 65% of $209,000, or $192,098.62.

The Insurance Carrier Used by Wayne's Pool Service Specifies 65