The Faulkner Company building was valued at $450,000. The building was insured for $400,000. The policy contains an 80% coinsurance clause. A fire caused damages of $260,000. Compute the amount the insurance company paid for damages.

Question

The Faulkner Company building was valued at $450,000. The building was insured for $400,000. The policy contains an 80% coinsurance clause. A fire caused damages of $260,000. Compute the amount the insurance company paid for damages.​

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The Answer of The Faulkner Company building was valued at $450,000. The building was insured for $400,000. The policy contains an 80% coinsurance clause. A fire caused damages of $260,000. Compute the amount the insurance company paid for damages.​

The Faulkner Company Building Was Valued at $450,000