Question

Jeremy homeowners policy has a face value of 56,400 and a 750 deductible. How much will the insurance pay on a a 1,612 loss

Answer 1

Answer: 862

Explanation:

A deductible refers to the amount of money that one will have to pay himself or herself toward an insured loss.

It should be noted that when a disaster occurs, the amount of the deductible will be subtracted from the loss. Since the loss is 1612 and the deductible is 750, the insurance company will pay:

= 1612 - 750

= 862