Jorge 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 co-insurance obligation?
b.What percentage of this loss will the insurance company pay?
c.How much of the loss will Jorge and Nancy have to absorb? (Show all work.)

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The Answer of Jorge 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 co-insurance obligation?
b.What percentage of this loss will the insurance company pay?
c.How much of the loss will Jorge and Nancy have to absorb? (Show all work.)

Jorge and Nancy Had a $30,000 Repair Bill on Their