Suppose in June you bought an $80,000 policy for a building with an actual cash value of $100,000, and the policy has an 80 percent coinsurance clause, which requires at least 80 percent of the value to be covered in order to receive the actual loss.In December, the actual cash value of the building has increased to $120,000.If the building suffers a $120,000 loss, what amount will the insurer pay?
A)$ 100,000
B)$ 120,000
C)$ 80,000
D)$ 96,000
E)$ 90,000

Question

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The Answer of Suppose in June you bought an $80,000 policy for a building with an actual cash value of $100,000, and the policy has an 80 percent coinsurance clause, which requires at least 80 percent of the value to be covered in order to receive the actual loss.In December, the actual cash value of the building has increased to $120,000.If the building suffers a $120,000 loss, what amount will the insurer pay?
A)$ 100,000
B)$ 120,000
C)$ 80,000
D)$ 96,000
E)$ 90,000

Suppose in June You Bought an $80,000 Policy for a Building