Over Insurance - How much the insurer will pay to the insured?

If one insured the building of his house for a sum of Rs. 500,000 against fire insurance. One day the house is totally gutted in a devastating fire. The insurance surveyors certified that the building is a total loss with no salvage value and that the insurable value of the building just prior to the loss was Rs. 400,000. How much the insurer will pay to the insured?

In case of partial loss full amount will be given.

There was a loss to the building of say, Rs.4 lakhs, the insurance company would pay the full amount. Nothing extra is payable for over-insurance.

In case of Over insurance, nothing is payable beyond the loss amount.