Harmony has a home insurance policy with a $500 deductible, and the claim for hail damage to the house's siding is $5,000 How much will the insurance company pay?

The deductible is the amount Harmony must pay herself before insurance covers the rest. Subtract the $500 deductible from the $5,000 claim: $5,000 − $500 = $4,500. The insurance company will pay $4,500, choice A.

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