Homeowners Policy (HO)Question 326 of 474
A windstorm causes $8,400 of covered damage to a dwelling and the Section I deductible is $1,500. The insurer pays:
a.$1,500
b.$6,900
c.$8,400
d.$9,900
Explanation
The deductible is retained by the insured and comes off the amount otherwise payable for a Section I loss, so $8,400 minus $1,500 leaves $6,900. The $9,900 answer adds the deductible instead of subtracting it, and paying the full $8,400 would ignore the retention the insured accepted in exchange for a lower premium.
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