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24-04-2024
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2. Pretend your homeowners policy has a premium of $150, a deductible of $5,000, and a limit of $300,000. Your
home suffers $170,000 in damages.
a. How much will you pay for the damages?
b. How much will your insurance pay?
Unlike most natural disasters, floods and earthquakes are not covered by a standard homeowners policy. Why
ght that cause problems for homeowners?

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