Duckiesaur8breadidn
Answered

For all your questions, big or small, IDNLearn.com has the answers you need. Join our community to access reliable and comprehensive responses to your questions from experienced professionals.

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.
We are happy to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. IDNLearn.com is committed to providing the best answers. Thank you for visiting, and see you next time for more solutions.