Question

A farmer’s house valued at Ksh. 1,200,000 was insured against fire for ksh. 900,000. Fire occurred and  damaged the house causing a loss of ksh. 500,000. Determine the value of compensation due to  the farmer.

Answer 1

Compensation = sum insured x actual loss
Value of the property
= 900,000  x 500,000= 375000
         1,200,000
Shs.375,000