Joan insures her house (with a market value of $50,000, not including

Joan insures her house (with a market value of $50,000, not including $10,000 for the foundation and lot) with a $30,000 insurance policy calling for 80% co-insurance. A fire causes $10,000 worth of structural damage valued at replacement cost.

Considering only the information provided, what amount is she likely to collect from the insurance company?
A)

$10,000
B)

$7,500
C)

$6,000
D)

$5,000

ANSWER

B