Question

A homeowner bought a homeowner's insurance policy. The homeowner pays an annual $650 premium for property coverage with a deductible is $1,175 for each claim. A windstorm causes $42,500 in damages. If a claim for the full amount of damages is approved, how much will the homeowner's insurance company pay for the damages?

$42,500
$41,325
$41,975
$40,825

Answer 1

The homeowner's insurance company will pay the full amount of damages minus the deductible. So, $42,500 (total damages) - $1,175 (deductible) = $41,325. Therefore, the insurance company will pay $41,325.