Nancy's house has been completely destroyed by fire.Prior to the accident,the house had a value of $100,000.Nancy had two separate policies totaling $60,000 each.She may collect $60,000 from each insurance company.

Question

Quizplus · Accepted Answer

Insurance policies typically include a clause that prevents the insured from collecting more than the actual loss. Nancy can only collect up to the value of the house, which is $100,000, not $120,000.

Nancy's House Has Been Completely Destroyed by Fire