Britven v. Occidental Insurance

Under the coinsurance clause in the policy, the insurer is liable only for such percentage of the loss as $4,000, the face of the policy, bears to eighty per cent of the actual cash value of the building immediately before the fire. The insured must bear the balance of the loss. It is therefore apparent that it is to plaintiff’s advantage to place a low value on the building before the fire. Likewise, it is to defendant’s advantage to fix such value higher.

The building, 35 by 60 feet, a one-story brick business structure in Mason City, built in 1938, was partially -destroyed on January 1,…