How much will Frank's insurer indemnify him for his loss after burning down his house?

In cases where an insured party intentionally causes damage or loss to their own property, the insurance policy is often voided. This principle, known as the principle of indemnity, dictates that an insurance provider will not indemnify an insured for losses that arise from their own intentional wrongdoing.

If Frank intentionally set fire to his house, this act would comprise a deliberate act of destruction, making him ineligible for any compensation from his insurer. As a result, the correct answer indicates that Frank's insurer would indemnify him for $0, reflecting the consequences of his actions.

In contrast, the other amounts provided in the options suggest different levels of compensation for potential unintentional losses, which do not apply in this scenario since the loss was a direct result of Frank's intentional act.