QuestionDecember 18, 2025

Pretend your homeowners policy has a premium of 150 . a deductible of 5,000 , and a limit of 300,000 Your home suffers 170,000 in damages. How much will you pay for the damages? 150 5,000 50,000 170,000 165,000

Pretend your homeowners policy has a premium of 150 . a deductible of 5,000 , and a limit of 300,000 Your home suffers 170,000 in damages. How much will you pay for the damages? 150 5,000 50,000 170,000 165,000
Pretend your homeowners policy
has a premium of 150 . a deductible
of 5,000 , and a limit of 300,000
Your home suffers 170,000 in
damages.
How much will you pay for the
damages?
 150
 5,000
 50,000
 170,000
 165,000

Solution
4.3(204 votes)

Answer

\5,000 Explanation 1. Subtract deductible from damages You pay the deductible first: 170,000 - 5,000 = 165,000 is covered by insurance. 2. Check if damages exceed policy limit 170,000 is less than the 300,000 limit, so all remaining damages are covered. 3. Determine your out-of-pocket cost You pay only the deductible: \5,000.

Explanation

1. Subtract deductible from damages<br /> You pay the deductible first: $170,000 - 5,000 = 165,000$ is covered by insurance.<br />2. Check if damages exceed policy limit<br /> $170,000$ is less than the $300,000$ limit, so all remaining damages are covered.<br />3. Determine your out-of-pocket cost<br /> You pay only the deductible: $\$5,000$.
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