Business, 23.10.2019 18:30, squawk1738

Stephanie owns a small warehouse that is insured for $200,000 under a commercial property insurance policy. the policy contains an 80 percent coinsurance clause. the warehouse sustained a $50,000 loss because of a fire in a storage area. the replacement cost of the warehouse at the time of loss is $500,000.

a. what is the insurer's liability, if any, for this loss? show your calculations.
b. assume that stephanie carried $500,000 of property insurance on the warehouse at the time of loss. if the amount of loss is $10,000, how much will she collect?
c. explain the rationale of coinsurance in a property insurance contract.

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Stephanie owns a small warehouse that is insured for $200,000 under a commercial property insurance...