Duckiesaur8breadidn
Answered

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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 & \multicolumn{1}{|c|}{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 in Event 2, we follow these steps:

1. Identify the deductible amount: The deductible is the amount the owner needs to pay out of pocket before the insurance covers any costs. Here, the deductible is \[tex]$2000.00. 2. Identify the repair cost for Event 2: The repair cost for Event 2 (Foundation repairs) is \$[/tex]25,000.00.

3. Calculate the out-of-pocket cost: The owner's out-of-pocket cost is the repair cost minus the deductible. This is calculated as:
[tex]\[ \text{Out of Pocket Cost} = \text{Repair Cost} - \text{Deductible} \][/tex]
Substituting the given values:
[tex]\[ \text{Out of Pocket Cost} = \$25,000.00 - \$2000.00 = \$23,000.00 \][/tex]

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