How much indemnification will Sarah receive for her extra expenses under her Extra Expense Coverage?

To understand how much indemnification Sarah will receive under her Extra Expense Coverage, it's crucial to recognize the principles behind such coverage. Extra Expense Coverage is designed to reimburse costs incurred to continue operations or minimize loss during a period of disruption, such as from a fire or natural disaster.

In this scenario, Sarah would examine her incurred extra expenses that directly relate to maintaining her business functionalities, such as rental costs for temporary facilities, equipment leases, or any essential services needed to keep her operation running while her main facility is being repaired.

If Sarah's coverage limit is set at $80,000 as specified, and her actual extra expenses documented amount to $80,000, she will receive full indemnification up to the limit of her policy. Thus, the correct answer would be that Sarah will receive $80,000 for her extra expenses under her Extra Expense Coverage, accurately reflecting her losses within the confines of her policy limits.

This understanding highlights the importance of knowing the terms and conditions specified in an insurance policy, as the coverage limit dictates the maximum reimbursement an insured party can expect to receive.