Where a person owns a half interest in a house valued at $200,000 and has insurance on that property in the amount of $400,000, if the house burns down, causing a loss of $100,000, how much will that person collect?
A) $50,000
B) $100,000
C) $200,000
D) $400,000
E) Nothing

Question

Quizplus · Accepted Answer

The person will collect $50,000, which is half of the $100,000 loss, matching their half interest in the property. Insurance payments are based on the actual loss up to the policy limit, not exceeding the owner's interest in the property.

Where a Person Owns a Half Interest in a House