The Lincoln Saltdogs is a professional minor league baseball team in the American Association League. The clubhouse is insured for $600,000 under a commercial property insurance policy with an 80% coinsurance clause.

The current replacement cost of the clubhouse is $1 million. After a playoff game for the league championship, a whirlpool tub for the players shorted out, and a fire ensued. The clubhouse sustained a $100,000 fire loss.

Ignoring any deductible, how much will the team's insurer pay for the loss?

This is what I have but I want to make sure I'm correct:

Clubhouse is insured for $600,000 with an 80% coinsurance clause

Current replace cost of clubhouse: $1,000,000

Fire loss: $100,000

Insured for only $600,000, since its insured value is less than 80% of its actual value of $100,000, when there is a loss, the insurance pays

(600,000/(0.80 * 1,000,000) * 100,000 = $75,000 will be paid for the loss by the insure.