What percentage of this loss will insurance company pay

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Reference no: EM132004372

Don and Judi had a $150,000 repair bill on their home after the tornado went through town. Their policy contained the usual 80% co-insurance clause. Their home's replacement value was $450,000; their policy coverage was $300,000 with a $500 deductible.(Round your percentage calculation to nearest whole number.)

a. How much insurance should they have carried to meet the co-insurance obligation?

b. What percentage of this loss will the insurance company pay?

c. How much of the loss will Don and Judi have to absorb? (Show all work.)

Reference no: EM132004372

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