CatIns Corp

CatIns Corp.(a fictitious name) sells homeowners' insurance contracts to homes along the shores of the Gulf of Mexico.The contract provides protection against hurricanes and has the following features:
•Annual premium $20,000.
•Fixed deductible $10,000.
•Maximum coverage amount $400,000 (which is less than the value of each home) .
•The contract pays for losses from one hurricane in a given year.
Assume that if a hurricane hits,it does the same dollar damage to all homes covered by the insurance policy.
-If a hurricane hits,the maximum amount that the insurance company CatIns can lose per home in a given year would be:

A) $275,000
B) $300,000
C) $370,000
D) $380,000
E) None of these answers are correct.