The RWE Safe Condominium Association is sued for liability damages when a visitor drowns in the association's pool. The amount of damages awarded is above the liability limits of the association's policy. Which of the following would give the individual association owners coverage for their share of the amount in excess of the association's policy?

a. Liability coverage

b. Replacement cost

c. Additional living expense

d. Loss assessment

Answer: D

Homeowners Policy

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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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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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