The Karns bought an insurance policy on their house with limits of $80,000.00. Their home sustained fire damage a few years later. The damage was valued at $40,000.00. At that time their house was estimated to have a replacement value of $110,000.00. Their policy had a co-insurance clause that required that they have coverage for 80 percent of the replacement value. What would their insurance settlement be? a) $29,090.91 b) $32,000.00 c) $36,363.64 d) $40,000.00 The Karns bought an insurance policy on their house with limits of $80,000.00. Their home sustained fire damage a few years later. The damage was valued at $40,000.00. At that time their house was estimated to have a replacement value of $110,000.00. Their policy had a co-insurance clause that required that they have coverage for 80 percent of the replacement value. What would their insurance settlement be? a) $29,090.91 b) $32,000.00 c) $36,363.64 d) $40,000.00