Question

Anderson has a renter's insurance policy with a deductible of $500. A fire in a neighboring apartment caused smoke damage to Anderson's furniture, which now must be replaced. The furniture was worth a total of $6,700. How much can Anderson expect to receive from his insurance company?

Answer 1

To determine how much Anderson can expect to receive from his insurance company, we need to consider the deductible and the value of the furniture.

1. Anderson's deductible is $500. This means that he is responsible for paying the first $500 of the claim out of his own pocket.

2. The total value of Anderson's furniture is $6,700.

To calculate the amount Anderson can expect to receive from his insurance company, we subtract the deductible from the total value of the furniture:

$6,700 (total value of furniture) - $500 (deductible) = $6,200

Step-by-step explanation: