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Percentage of this loss will the insurance company

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Reference no: EM131114064

George and Nancy had a $30,000 repair bill on their home after the tornado went through town. Their policy contained the usual 80% co-insurance clause. Their home's replacement value was $150,000; their policy coverage was $110,000 with a $250 deductible."

a. How much insurance should they have carried to meet the coinsurance obligation?

b. What percentage of this loss will the insurance company pay?

c. How much of the loss will George and Nancy have to absorb?

Reference no: EM131114064

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