A Building Owned by X Company Is Insured for $100,000

Multiple Choice

A building owned by X Company is insured for $100,000 but the insurance contract contains an 80% co- insurance clause. The building is damaged by fire to the amount of $20,000. The depreciated replacement value of the insured property is $250,000. The insurance company will then pay

A) $5,000.
B) $15,000.
C) $8,000.
D) $10,000.
E) $20,000.