9
QuizMultiple Choice

Home Ownership — Test

Question 9 • Financial Math

Thea's house was damaged during a natural disaster. The total repair cost is estimated to be $⁢15,000 If Thea's home insurance policy has a deductible of $⁢500 and a coverage limit of $⁢200,000 , how much will the insurance company pay for the repairs?

Answer
A
14 dollars comma 500
B
0 dollars
C
500 dollars
D
15 dollars comma 000

Explanation

Thea pays the $500 deductible first. The insurance company covers the remaining repair cost: $15,000 − $500 = $14,500. Since the $14,500 claim is below the $200,000 coverage limit, the insurer pays $14,500, choice A.

AI-written and checked against the verified answer.

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