If no insurance claim is submitted for Event 2, the owner's out of pocket cost for the repair would be $1,800.
If no insurance claim is submitted for Event 2, the owner's out of pocket cost for the repair would be $1,800.
Since the deductible is $1,000, the owner would be responsible for paying that amount.
Additionally, since no claim is being submitted, there is no insurance coverage for the remaining $1,800 of the repair cost, so the owner would have to pay that as well.
Therefore, the owner's out of pocket cost for the repair is $1,000 + $1,800 = $2,800.
The probable question may be:
Deductible: $1,000.00
Event 1 Event 2
Description injury to guest property damage
Repair cost $20,000.00 $1,800.00
If no insurance claim is submitted for Event 2, what is the owner's out of pocket cost for the repair?
A. $1,000
B. $20,000
C. $19,000
D. $1,800