Lonnie and Paula have a homeowner's policy with $75,000 coverage and a $250 deductible. Their home recently suffered extensive fire damage in the amount of $50,000. Assuming the replacement value of the home was $85,000, how much will the insurance company pay on this loss?

Question

Business

Louis Whitehead

12 January, 10:04

Lonnie and Paula have a homeowner's policy with $75,000 coverage and a $250 deductible. Their home recently suffered extensive fire damage in the amount of $50,000. Assuming the replacement value of the home was $85,000, how much will the insurance company pay on this loss?

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Answers (1)

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Krista Eaton · Answer 1

Amount paid by insurance company on loss is $49,750

Explanation:

given data

policy coverage = $75,000

deductible = $250

fire damage amount = $50,000

to find out

insurance company pay on this loss

solution

as we have find insurance company pay on this loss that is calculate as

insurance company pay on this loss = fire damage amount - deductible amount

so insurance company pay on this loss = 50000 - 250

insurance company pay on this loss = 49,750

so Amount paid by insurance company on loss is $49,750