Smith Owned a Concrete Block Building Valued at $200,000

question 19

True/False

Smith owned a concrete block building valued at $200,000.Because it was virtually fireproof,he insured it for only $100,000 under a policy of insurance,which contained an 80 percent co-insurance clause.Some time later,the building was damaged by fire.
-If the fire damage was $80,000,the insurer would be obliged to pay only one-half of the loss,because Smith had insured the building for half of its value.

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