Your Home Insurance Policy Has a $1,000 Deductible

question 22

Multiple Choice

Your home insurance policy has a $1,000 deductible.If a windstorm causes $2,500 damage to your home,what amount of the claim would the insurance company pay?

• A)$2,500
• B)$1,000
• C)$1,500
• D)$500
• E)$0

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Definitions:

Plaster

A building material made of lime or gypsum, water, and sand, used for coating walls and ceilings.

Labor

The deployment of human manpower, both in physical form and intellectual capacity, for generating goods and services.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, clearing the market.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of money, calculated on an annual basis.