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?
A)$50 000
B)$200 000
C)$1000
D)$400 000
E)nothing

Question

Quizplus · Accepted Answer

The person only owns a half interest in the house, so their insurance coverage shouldn't exceed $100,000 (half of the value of the house). Therefore, they will receive the full $100,000 loss, minus their deductible, which is typically around $500-$1,000. So, the person will collect approximately $99,000-$99,500.

A Person Owns a Half Interest in a House Valued