In case of damages caused by tornado worth $35,000, a claim worth the full amount will be paid by the insurance cover company to repair the damages of home.
An insurance cover is the amount up to which the damages to the property of the insured is paid by the insurer. An insurance cover is redeemable only in case of happening of the event against which an insurance is taken.
The insurance cover to be paid by the company in the above situation will be paid in full by the company if the insured amount if at least 80% of the replacement cost of the property.
In the given case, the insurance cover is taken for more than 88%, thus the damages worth $35,000 will be paid in full by the insurer.
Hence, option A holds true regarding insurance cover.
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