An insured has a building with an actual cash value of $100,000 insured for $60,000 under an 80 percent coinsurance clause. If there is a loss of $10,000, the insured may recover

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The insured may recover $7,500. This is calculated using the coinsurance formula: (Amount of Insurance Carried / Amount of Insurance Required) x Loss = Claim Payment. Here, Amount of Insurance Required is 80% of $100,000 (actual cash value) = $80,000. The Amount of Insurance Carried is $60,000. So, ($60,000 / $80,000) x $10,000 = $7,500.

An Insured Has a Building with an Actual Cash Value