Question
Gabriel's home was just struck by a hurricane. He was just ready to list his property on the market with a real estate agent for
Gabriel's home was just struck by a hurricane. He was just ready to list his property on the market with a real estate agent for $700,000 when the damage occurred. Gabriel, was told that his home's replacement cost was $600,000 and he unfortunately only had home insurance replacement cost of $450,000. The hurricane caused $300,000 worth of damage to his home. Gabriel now realizes that he did not purchase sufficient insurance coverage equal to at least 80% of the house's total replacement value. What amount of damages would the insurance company cover?
a) 281,250
b) 240,000
c) 256,000
d) 300,000
e) 284,357
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