Real Estate Math

A Maine homeowner's insurance policy has a $1,000 deductible and covers $280,000 in dwelling coverage. After a $15,000 fire loss, the insurance company pays:

A$13,000
B$14,000✓ Correct
C$15,000
D$16,000

Explanation

Insurance pays = Loss − Deductible = $15,000 − $1,000 = $14,000. Using the values given ($1,000, $280,000), apply the appropriate formula.. The correct answer is $14,000.. This is a common calculation on the Maine real estate exam.

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