You own a home with a market value of $400.000. Your home insurance policy has an 80% coinsurance clause. You buy $300,000 of property insurance. A tree falls on your house and you have a $50.000 of damages. How much will the insurance company pay for this claim? (assume no deductible) OA $46,875 B. $50,000 OC. $0 OD. $37,500
You own a home with a market value of $400.000. Your home insurance policy has an 80% coinsurance clause. You buy $300,000 of property insurance. A tree falls on your house and you have a $50.000 of damages. How much will the insurance company pay for this claim? (assume no deductible) OA $46,875 B. $50,000 OC. $0 OD. $37,500
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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Transcribed Image Text:You own a home with a market value of $400.000. Your home insurance policy has an 80% coinsurance clause. You buy
$300.000 of property insurance. A tree falls on your house and you have a $50,000 of damages. How much will the insurance
company pay for this claim? (assume no deductible)
OA $46,875
OB. $50,000
OC. $0
OD. $37,500
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