Duckiesaur8breadidn
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If an insurance claim is submitted for Event 2, what is the owner's out-of-pocket cost for the repair?

\begin{tabular}{|l|r|r|}
\hline
\multicolumn{3}{|c|}{Deductible: \[tex]$2000.00} \\
\hline
& Event 1 & Event 2 \\
\hline
Description & Tree damage & Foundation repairs \\
\hline
Repair Cost & \$[/tex]2,500.00 & \$25,000.00 \\
\hline
\end{tabular}

Sagot :

GinnyAnsweridn
To determine the owner's out of pocket cost for the repair of Event 2, follow these steps:

1. Identify the deductible amount: The deductible is a fixed amount that the owner must pay before the insurance company covers any costs. In this case, the deductible is \[tex]$2000.00. 2. Identify the repair cost for Event 2: The cost to repair the foundation is \$[/tex]25,000.00.

3. Calculate the out of pocket cost: Subtract the deductible from the total repair cost.

So, the calculation is as follows:
[tex]\[ \text{Out of pocket cost} = \text{Repair cost for Event 2} - \text{Deductible} \][/tex]
[tex]\[ \text{Out of pocket cost} = \$25,000.00 - \$2,000.00 = \$23,000.00 \][/tex]

Therefore, the owner's out of pocket cost for the repair of Event 2 is \$23,000.00.
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