A community association's property insurance policy contains a coinsurance clause requiring 80% coverage. If the building is valued at $1,000,000 but insured for only $600,000, how does this affect a $200,000 loss?
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A
The full $200,000 is paid minus the deductible
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B
The insurer pays $150,000 (75% of the loss)
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C
The insurer pays $200,000 with a coinsurance penalty waived
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D
The policy is void due to underinsurance