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

question 10

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.
-Under a co-insurance clause,the insured becomes a partial insurer if he fails to maintain the required amount of insurance on the insured property.