Property Valued at $200,000 Was Insured for $140,000

question 3

Short Answer

Property valued at $200,000 was insured for $140,000. The policy contained a 60% coinsurance clause. A fire caused $150,000 in damages. Compute the amount the property owner must pay if the property is repaired for $150,000.

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Definitions:

Learning Principles

Fundamental guidelines or rules that describe how people acquire new knowledge, skills, attitudes, or behaviors.

Human Behavior

The entirety of actions, reactions, and interactions undertaken by humans, influenced by culture, attitudes, emotions, values, ethics, and the external environment.

Social Psychology

The scientific study of how people affect and are affected by others.

Kurt Lewin

A pioneering psychologist known for his work in group dynamics, social psychology, and organizational development, and for founding action research.