Question

Emilia lost $4,000 in personal belongings due to a flood at her apartment complex. Fortunately, she had renter’s insurance with a $500 deductible. How much would she receive from the insurance company if her maximum coverage was $10,000? $4,000.00 $500.00 $3,500.00 $4,500.00

Answer 1

She would receive $3500 maximum.

Since she has $10,000 in coverage, the entire $4000 loss is covered.  However, the insurance company would only pay her the amount after the deductible has been taken:

4000 - 500 = 3500