rachel has homeowners insurance with $300,000 worth of dwelling coverage. the monthly premiums are $150 and…

rachel has homeowners insurance with $300,000 worth of dwelling coverage. the monthly premiums are $150 and the policy has a $1000 deductible. rachels out - of - pocket cost to carry the policy is $ for the year.

rachel has homeowners insurance with $300,000 worth of dwelling coverage. the monthly premiums are $150 and the policy has a $1000 deductible. rachels out - of - pocket cost to carry the policy is $ for the year.

Answer

Explanation:

Step1: Calculate annual premium

Monthly premium is $150. Multiply by 12 months. $150\times12 = 1800$

Step2: Consider deductible

The deductible is a one - time out - of - pocket cost in case of a claim. But we are just calculating the cost to carry the policy without a claim situation, so we don't add the deductible.

Answer:

$1800$