Your home and property have a market value of $240,000. To meet the coinsurance provision, you would need at least $192,000 of insurance.
A property insurance clause that reduces the insured's ability to recover losses if the limit of insurance obtained by the insured is less than or equal to a certain percentage (often 80%) of the value of the insured property.
When a property owner fails to keep insurance coverage equal to at least 80% of the replacement cost of the home, the coinsurance formula is used. A property owner effectively agrees to retain some of the risk if they purchase insurance for less than the minimum amount needed by the coinsurance provision.
Learn more about coinsurance provision here https://brainly.com/question/14292864
#SPJ4
