Connie and Sam's detached garage was recently destroyed by a tornado.Their house was insured for $135,000,and the detached structures coverage was 10 percent of the insured value of the home.The loss to the garage was valued at $15,000.The insurance company would pay ____ less the deductible on this loss.
A)$15,000
B)$14,250
C)$12,000
D)$13,500

Question

Quizplus · Accepted Answer

The detached structures coverage is 10% of the insured value of the home, which is $135,000. Therefore, the coverage for the garage is $13,500 (10% of $135,000). The insurance company would pay $13,500 less the deductible.

Connie and Sam's Detached Garage Was Recently Destroyed by a Tornado.Their