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?

Question

Quizplus · Accepted Answer

Since the person only owns a half interest in the house, they are only entitled to half of the insurance payout. Therefore, they will collect $200,000 (half of $400,000) from the insurance company. However, since the loss of the house was only $100,000, they will only collect half of that amount, which is $50,000 (half of $100,000).

A Person Owns a Half Interest in a House Valued