Question

Your home insurance policy has a $500 deductible. If a small fire causes $1200 damage to your home, what amount of the claim would the insurance company pay?
A. $500
B. $700
C. $1200
D. $1700

Answer 1

A deductible is what you are required to pay from the cost. So if there's 1200 damage, you will pay 500 of that.

1200-500 = 700 (B) is what the insurance will pay.