Question

The insured's house is totally destroyed in a fire. The house is insured for 200,000. The adjuster who investigates the claims determines the ACV of the home is185,000. What is the amount of loss?

Answer 1

The amount of loss the insured faces for the house destroyed by fire is $15,000, which is the difference between the insured amount and the actual cash value determined by the adjuster.

Step-by-step explanation:

The question involves calculating the amount of loss an insured party faces when an insured asset is destroyed. In this case, it is regarding a house that was destroyed by a fire. The house was insured for $200,000, and the adjuster has determined the actual cash value (ACV) of the home to be $185,000. To calculate the amount of loss, we simply subtract the ACV from the insured amount. Therefore, the amount of loss would be $200,000 (the insured amount) minus $185,000 (the ACV), which equals $15,000.

The amount of loss in this case would be the difference between the insured value of the house and the actual cash value (ACV) determined by the adjuster. In this case, the insured value is $200,000 and the ACV is $185,000.

To calculate the amount of loss, we subtract the ACV from the insured value:

Amount of Loss = Insured Value - ACV

Amount of Loss = $200,000 - $185,000

Amount of Loss = $15,000

Therefore, the amount of loss in this case is $15,000.