James holds a DP-1 policy on his house for $150,000. His wife, Jane, feels that they should really have closer to $200,000 in total coverage, so she takes out an additional $50,000 DP-1 policy on the same dwelling. Both policies pay settlements on a pro rata basis. After a fire causes $32,000 in damage to the home, how much of the damages will be covered by Jane's DP-1 policy?

James holds a DP-1 policy on his house for $150,000. His wife, Jane, feels that they should really have closer to $200,000 in total coverage, so she takes out an additional $50,000 DP-1 policy on the same dwelling. Both policies pay settlements on a pro rata basis. After a fire causes $32,000 in damage to the home, how much of the damages will be covered by Jane's DP-1 policy?



Answer: 8,000

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