Brian’s toy store building is worth $600,000.00 and is insured for $420,000.00. assuming an 80 percent coinsurance clause and that a fire caused $170,000.00 damage, the liability of the insurance company is $148,750.00. $119,000.00. $148,570.00. $191,000.00.

Option A is the answer.

Step-by-step explanation:

We will begin by dividing the actual amount of coverage on the house by the amount that should have been carried i.e $480000.

80% of $600,000 is = =$480000

So,

Now, we will multiply this amount by the amount of the loss;

Therefore, the liability of the insurance company is $148,750.