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Insurance · General

An insured's homeowner policy has a $500 deductible. A covered loss totals $1,800. What does the insurer pay?

Correct answer

$1,300

  1. A $500
  2. B $1,300
  3. C $1,800
  4. D $2,300

Why this is the answer

The insurer pays the loss minus the deductible: $1,800 − $500 = $1,300. The deductible is the insured's share of each covered loss.
Source: Adjuster Exam, Deductible Calculation

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