Judy purchased a property and built a building on it at a cost of $200,000. She purchased fire insurance on the building in the sum of $150,000. A fire caused $150,000 damage to the building. Under normal circumstances would Judy be able to recover the full amount of the loss? Give reasons for your answer.

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The Answer of Judy purchased a property and built a building on it at a cost of $200,000. She purchased fire insurance on the building in the sum of $150,000. A fire caused $150,000 damage to the building. Under normal circumstances would Judy be able to recover the full amount of the loss? Give reasons for your answer.

Judy Purchased a Property and Built a Building on It