if an insurance claim is submitted for event 1, what is the owners out of pocket cost for the…

if an insurance claim is submitted for event 1, what is the owners out of pocket cost for the repair?\ndeductible: $2000.00\n| |event 1|event 2|\n|--|--|--|\n|description|tree damage|foundation repairs|\n|repair cost|$2,500.00|$25,000.00|

if an insurance claim is submitted for event 1, what is the owners out of pocket cost for the repair?\ndeductible: $2000.00\n| |event 1|event 2|\n|--|--|--|\n|description|tree damage|foundation repairs|\n|repair cost|$2,500.00|$25,000.00|

Answer

Explanation:

Step1: Identify relevant amounts

Deductible = $2000, Repair cost for Event 1 = $2500

Step2: Calculate out - of - pocket cost

The out - of - pocket cost is the lesser of the repair cost and the deductible. Since the repair cost ($2500) is greater than the deductible ($2000), the out - of - pocket cost is the deductible amount.

Answer:

$2000