duckiesaur8bread
Answered

If an insurance claim is submitted for Event 1, what is the owner's out-of-pocket cost for the repair?

\begin{tabular}{|l|r|r|}
\hline \multicolumn{3}{|c|}{ Deductible: [tex]$\$[/tex] 1000.00[tex]$} \\
\hline & Event 1 & Event 2 \\
\hline Description & Injury to guest & Property damage \\
\hline Repair Cost & $[/tex]\[tex]$ 20,000.00$[/tex] & [tex]$\$[/tex] 1,800.00$ \\
\hline
\end{tabular}



Answer :

GinnyAnswer
Certainly! Let's break down the solution step-by-step to find out the owner's out-of-pocket cost for the repair in Event 1.

1. Identify the deductible:
The deductible is the amount the insurance policyholder must pay out-of-pocket before the insurance company pays the remaining costs. In this case, the deductible is [tex]$1,000.00. 2. Identify the repair cost for Event 1: The repair cost for Event 1, which involves injury to a guest, is $[/tex]20,000.00.

3. Calculate the out-of-pocket cost:
According to the insurance policy, the policyholder must pay the deductible amount first. Therefore, for Event 1, the out-of-pocket cost that the owner needs to pay is equal to the deductible.

So, the owner's out-of-pocket cost for the repair in Event 1 is [tex]$1,000.00. In summary: - The deductible is $[/tex]1,000.00.
- The repair cost for Event 1 is [tex]$20,000.00. - The out-of-pocket cost for the owner is $[/tex]1,000.00.

Thus, the owner’s out-of-pocket cost for the repair in Event 1 is $1,000.00.

Other Questions