The insured has a named peril policy that covers hail, fire, wind, and lightning. Which one of the following events would be covered?

A) A rain storm causes the insured's basement to flood.

B) The roof collapses from heavy snow.

C) A window is broken in a riot.

D) The roof is damaged in an electrical storm.

Answer: D

Property

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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