Answered step by step
Verified Expert Solution
Question
1 Approved Answer
George and Nancy had a $30,000 repair bill on their house after the tornado went though town. Their policy contained the usual 80% co-insurance clause.
George and Nancy had a $30,000 repair bill on their house after the tornado went though 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.
How much insurance should they have carried to meet the coinsurance obligation?
What percentage of this loss will the insurance company pay?
How much of the loss will George and Nancy have to absorb?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started