Question

If the Butterfields suffer a $47,000 homeowner’s loss due to fire, how much will the insurance company pay on the claim, accounting for any deductible and co-pay provisions?

a. $45,193
b. $45,693
c. $46,500
d. $47,000

Answer 1

The answer will be option "c" $46,500.

Explanation: Here the Butterfields will have to pay for the deductible amount and co-pay provisions. It should be noted that deductibles are out-of-pocket costs that you must pay before your insurance coverage kicks in. In case of homewoner's insurance deductible is a specific amount you must spend each year (or per occurrence) before your insurance policy starts to pay some or all of the costs.

The deductible amount as mentioned in the case is $500 and hence 47,000-500 = $46,500