Question

1. what is one of the trade - offs for having a renters insurance policy with a low deductible?

lower monthly payments
higher monthly payments
higher payouts for claims
lower interest rates

Explanation:

In renter's insurance, a deductible is the amount the policyholder pays before the insurance company pays a claim. A low deductible means the insurance company has to pay out more often or for larger portions of claims (since the policyholder pays less out - of - pocket first). To compensate for this increased risk of payout for the insurance company, they charge higher monthly premiums (payments). Lower monthly payments would be associated with a high deductible (as the policyholder takes on more risk). Higher payouts for claims are not a trade - off of having a low deductible (the low deductible affects what the policyholder pays upfront, not the payout amount relative to the deductible choice in this trade - off sense). Lower interest rates are not related to the deductible - premium trade - off in renter's insurance.

Answer:

B. higher monthly payments