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10 May, 12:06

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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  1. 10 May, 12:23
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    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
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