The Value of a Home Is $50,000, and the Homeowner

question 44

Multiple Choice

The value of a home is $50,000, and the homeowner policy covering it contains an 80% coinsurance clause. Assume the home is insured for $30,000 and a $12,000 loss occurs. How much will the insured recover? (Ignore the ACV calculation and assume there is no fraud or other unusual circumstances surrounding the loss.)

• A) $12,000
• B) $9,000
• C) $16,000
• D) The answer cannot be determined by the facts given.

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