Mark owns a building that he insured for $90,000. The replacement cost of the building is $100,000. Mark's property insurance policy has an 80 percent coinsurance clause and no deductible. If Mark's building is destroyed by a covered peril, how much will Mark receive from his insurer?

Mark owns a building that he insured for $90,000. The replacement cost of the building is $100,000. Mark's property insurance policy has an 80 percent coinsurance clause and no deductible. If Mark's building is destroyed by a covered peril, how much will Mark receive from his insurer?



A) $80,000

B) $90,000

C) $101,250

D) $112,500


Answer: B) $90,000

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