Your home insurance policy has a $190 deductible

Finance Apr 03, 2021

Your home insurance policy has a $190 deductible. If a small fire causes $640 damage to your home, what amount of the claim would the insurance company pay?

a) $190

b) $450

c) $415

d) $640

e) not able to determine from this information

Expert Solution

Computation of the amount of payment would insurance company pay:-

Amount of payment = Amount of damage caused - Deductible amount

= $640 - $190

= $450

Hence, the correct option is b) $450

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