Problem 10-12 Determining What Amount the Insurance Company will Pay for the Damages (L010-3] Eric and Susan just purchased their first home, which cost $150,000. They purchased a homeowner's policy to insure the home for $140,000 and personal property for $85,000. They declined any coverage for additional living expenses. The deductible for the policy is $500. Soon after Eric and Susan moved into their new home, a strong windstorm caused damage to their roof. They reported the roof damage to be $22,000. While the roof was under repair , the couple had to live in a nearby hotel for three days. The hotel bill amounted to $520. Assuming the insurance company settles claims using the replacement value method, what amount will the Insurance company pay for the damages to the roof? Insurance covered amount