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The Lincoln Saltdogs is a professional minor league baseball team in the American Association league. The clubhouse is insured for $600,000 under a commercial property insurance policy with an 80 percent coinsurance clause. The current replacement cost of the clubhouse is$1 million. After a playoff game for the league championship, a whirlpool tub for the players shorted out, and a fire ensued. The clubhouse sustained a $100,000 fire loss. Ignoring any deductible, how much will the team’s insurer pay for the loss?
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1 of 4In this problem, we are asked to perform calculations regarding coinsurance.
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