Question

Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If $3,800 worth of jewelry and $2,800 worth of silverware were stolen from a family, what amount of the claim would not be covered by insurance? Show your work.

Answer 1

Answer:

$ 3100 loss amount is not covered by insurance.

Explanation:

Amount not covered under insurance = Amount lost - Maximum Insurance Amount

• For Jewellery  : Jewellery lost - maximum jewellery amount cover  = 3800 - 1000  = 2800

• For Silverware : Silverware lost - maximum silverware amount cover  = 2800 - 2500 = 300

So, Total Amount loss not covered = Loss at jewellery + loss at silverware

= 2800 + 300 = $3100