Answer:
$446,667
Step-by-step explanation:
Given the Recovery with Co-Insurance Clauses
Formula: Recovery = Damage Claim x (% Replacement Cost Covered / Minimum coverage requirement)
Therefore:
Replacement Cost covered is = $400,000 by the home home owner
Hence, slotting the figure into the formula, we have
Claim recovery = $600,000 x (67% cost covered ÷ 90% required) = $446,667
Therefore the final answer or that the owner will recover from the insurer is $446,667