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Answered

If no insurance claim is submitted for Event 1, what is the owner's out-of-pocket cost for the repair?

\begin{tabular}{|l|c|r|}
\hline \multicolumn{3}{|c|}{Deductible: [tex]$\$[/tex] 2500.00[tex]$} \\
\hline & Event 1 & Event 2 \\
\hline Description & Fire damage & Burst water pipes \\
\hline Repair Cost & $[/tex]\[tex]$ 40,500.00$[/tex] & [tex]$\$[/tex] 3,000.00$ \\
\hline
\end{tabular}



Answer :

GinnyAnswer
To determine the owner's out-of-pocket cost for the repair of Event 1 if no insurance claim is submitted, follow these steps:

1. Identify the repair cost for Event 1: The repair cost is given as [tex]$40,500.00. 2. Understand that without an insurance claim submission: If no claim is submitted, the owner must cover the entire repair cost themselves. 3. Calculate the out-of-pocket cost: Since no insurance claim is being submitted, the deductible does not come into play. The out-of-pocket cost is simply the full repair cost of Event 1. Therefore, the out-of-pocket cost for the repair of Event 1 is $[/tex]40,500.00.