Question

Michael’s basement recently flooded. He has a homeowner’s policy covering flood damage that has a $500 deductible. The total damages to the basement totaled $2500. How much will the insurance company pay in this scenario? A. $500 B. $2500 C. nothing D. $2000

Answer 1

Answer:

D. $2000

Explanation:

Calculation to determine How much will the insurance company pay in this scenario

Using this formula

Amount to pay=Total damages -Deductible homeowner’s policy covering flood damage

Let plug in the formula

Amount to pay=$2,500-$500

Amount to pay=$2,000

Therefore How much will the insurance company pay in this scenario will be $2,000