Jorge and Nancy Had a $30,000 Repair Bill on Their

Essay

Jorge and Nancy had a $30,000 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 $150,000; their policy coverage was $110,000 with a $250 deductible.
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 Jorge and Nancy have to absorb? (Show all work.)