Your business owns a piece of property that is valued at $200,000 and is insured. The insurance policy covering this property has an 80% coinsurance clause written into the contract. The amount of insurance purchased with this contract is $120,000. In the event that there was a $120,000 loss to the building due to a covered peril, what would be the amount of reimbursement you would receive from the insurance company due to this loss? (Assume that no deductible applies.)

Your business owns a piece of property that is valued at $200,000 and is insured. The insurance policy covering this property has an 80% coinsurance clause written into the contract. The amount of insurance purchased with this contract is $120,000. In the event that there was a $120,000 loss to the building due to a covered peril, what would be the amount of reimbursement you would receive from the insurance company due to this loss? (Assume that no deductible applies.)

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 26CE

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