Coinsurance Exercise:

- Building value is ACV of $2,500,000.00
- Insured policy carries an ACV coverage limit of $150,000.00 on a Basic Perils Form.
- The deductible is $5,000.00
- There is a partial covered loss of $80,000.00

1. What will the insurance company pay for the loss?

2. What will the insurance company pay if the entire building is flattened by a tornado?

3. What will they pay if then entire building collapses due to the weight of snow on the roof?

Blanket Exercise:

- Business personal property/contents value at location 1 is $600,000.00.
- Contents value at location 2 is $500,000.00.
- Contents value at location 3 is $300,000.00.
- Blanket insurance on contents was purchased for a limit of $1,000,000.00 on a Broad Perils form.

1. There is a fire at location 2, resulting in a contents loss of $250,000.00.

What will the insurance company pay?

2. There is a frozen pipe which causes damage of $100,000.00 to location 2.

What will the insurance company pay?