Solve the problem using the table below.
In addition, options can be added to the base coverage including the following: identity theft/fraud protection-$20/year; sewer/sump pump backup protection-$75/year. Extended coverage endorsements beyond the maximum coverage amounts can also be added for specific personal property. Endorsements can be added for: jewelry, watches, and furs-$0.85/$100/year; camera equipment-$1.35/$100/year; computer equipment-$0.95/$100/year; fine art and collectibles-$1.10/$100/year; firearms and accessories-$1.45/ $100/year; and portable tools-$3.25/$100/year.
A home with a replacement value of
is insured in a policy that contains an 80% coinsurance clause. The face value of the policy is
If a fire causes damage valued at
find the amount of compensation to the owner by the insurance company.
◦ $3375
◦ $2667
◦ $2400
◦ $3000
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Problem