Affordable Consulting has insured its building with multiple companies for a total of $688,000, of which $275,200 is with USF&G. Assuming that all coinsurance requirements have been met, how much would USF&G be responsible for in the event of a $565,000 fire?

Question

Quizplus · Accepted Answer

USF&G's responsibility is proportional to its share of the total insurance. $275,200 / $688,000 = 0.4. Therefore, USF&G would cover 40% of the $565,000 loss, which is $226,000.

Affordable Consulting Has Insured Its Building with Multiple Companies for a Total