Last year, Thea and Rory Brown bought a home with a dwelling replacement value of $270,000 and insured it (via an HO-5 policy) for $219,000. The policy reimburses for actual cash value and has a $1,000 deductible, standard limits for coverage C items, and no scheduled property. Recently, burglars broke into the house and stole a 2-year-old television set with a current replacement value of $1,200 and an estimated useful life of 10 years. They also took jewelry valued at $1,300 and silver flatware valued at $3,200.

If the Browns policy has an 80% co-insurance clause, do they have enough insurance?

Assuming a 50% coverage C limit, calculate how much the Brown family would receive if they filed a claim for the stolen items. Do not round intermediate calculations. Round the answer to two decimal places.

What advice would you give the Brown family about their homeowner's coverage?