Question

If Carissa Dalton has a $136,000 home insured for $105,000, based on the 80 percent coinsurance provision, how much would the insurance company pay on a $8,600 claim?

Answer 1

$ 8299.632

Step-by-step explanation:

Given data in the problem:

The value of the home = $ 136,000

The insured amount of the house = $ 105,000

80% coinsurance provision = 0.8 × $ 136,000 = $ 108,800

Claimed amount = $ 8,600

Therefore, the claimable amount =
`8600*((105000)/(108800))`

= $8299.632

hence, the amount the insurance company will pay = $ 8299.632