Question

"A storm damaged Mr. Smith’s roof, allowing rainwater to leak into the house. Mold began to grow. It cost $5200 to repair the roof and $2500 to clean up the mold. Mr. Smith’s policy has a $500 deductible, and it excludes mold damage. How much did the insurance company pay Mr. Smith?"

Answer 1

Answer: $4,700

Explanation:

Given that,

Repairing cost of roof = $5,200

Cost to clean up the mold = $2,500

Policy Deductible = $500

It was given that mold damage is excluded.

So, insurance company should pay Mr. Smith:

= Repairing cost of roof - Policy Deductible

= $5,200 - $500

= $4,700

Therefore, the insurance company pay Mr. Smith the amount equal to $4,700.