Suppose That Early This Year You Buy a Home Valued

Multiple Choice

Suppose that early this year you buy a home valued at $180,000 and purchase $200,000 worth of fire insurance on it.According to the principle of indemnity,what amount of money would the insurer pay you if the home were totally destroyed by fire?

A) $90,000
B) $100,000
C) $180,000
D) $200,000