If an insured purchased a $200,000 extra expense policy with limits of 40%, 80%, and 100%, what is the maximum payable for a 47-day loss?

To determine the maximum payable for a 47-day loss under a $200,000 extra expense policy with a limit of 80%, it's essential to understand how the policy limits work in relation to the duration of the loss and the percentage limit.

In this case, the policy has a total limit of $200,000, meaning that the insured can claim up to that amount for extra expenses incurred as a result of a loss. The extra expense coverage is often limited to a certain percentage of the total policy limit for different scenarios or durations; here, there are limits of 40%, 80%, and 100%, but for a 47-day loss, the appropriate limit would be the highest percentage—80%.

To calculate the maximum amount payable for the loss, you would apply the 80% limit to the total policy amount.

1. Calculate 80% of $200,000:

• 0.80 x $200,000 = $160,000

This means that for the duration of the loss, the maximum payable under the 80% limit is $160,000. Therefore, if the extra expenses incurred during the 47-day loss are equal to or below this threshold, the insured will receive the full amount