Personal Finance 1st Edition by Jack R. Kapoor

Exercise 20

Calculating a Coinsurance Claim. If Carissa Dalton has a $130,000 home insured for $100,000, based on the 80 percent coinsurance provision, how much would the insurance company pay on a $5,000 claim? (Obj. 4)

Step 1 of 2

Coinsurance claim clause is a policy provision that requires a homeowner to pay for part of the losses if the property is not insured for the specified percentage of the replacement value.