Question

For each of the following situations, what amount would the insurance company pay? (Leave no cells blank - be certain to enter "0" wherever required.)

a. Wind damage of $2,400; the insured has a deductible of $500.

Insurance payment -

b. Theft of a stereo system worth $2,800; the insured has a deductible of $500.

Insurance payment -

c. Vandalism that does $610 of damage to a home; the insured has a deductible of $500.

Insurance payment -

Answer 1

a. Wind damage of $2,400; the insured has a deductible of $500. Insurance payment - 2400-500 = 1900$ b. Theft of a stereo system worth $2,800; the insured has a deductible of $500. Insurance payment - 2800-500 = 2300$ c. Vandalism that does $610 of damage to a home; the insured has a deductible of $500. Insurance payment - 610-500 = 110$

Deductibles are those which are incurred by the insured person before insurance claim kicks in. Thus before claiming from insurance company , amount of deductibles must be substracted from the loss. Remaining balance will be covered or paid by insuance company