Question

Soon after Eric and Susan moved into their new home, a strong windstorm caused damage to their roof. They reported the roof damage to be $17,000. While the roof was under repair, the couple had to live in a nearby hotel for three days. The hotel bill amounted to $320. Assuming the insurance company settles claims using the replacement value method, what amount will the insurance company pay for the damages to the roof

Answer 1

The amount that  the insurance company pay for the damages to the roof is :$16,500.

Amount Insurance company paid for damage

Total expenses incurred from the windstorm=$17,000 + $320

Total expenses incurred from the windstorm=$17,320

Insurance covered amount=$17,000 − $500 deductible

Insurance covered amount= $16,500

Inconclusion the amount that  the insurance company pay for the damages to the roof is :$16,500.

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