4. karishma has a renters insurance policy with a coverage limit of $25,000. while shes on vacation a fire…

4. karishma has a renters insurance policy with a coverage limit of $25,000. while shes on vacation a fire breaks out, ruining $9,000 worth of possessions before the fire department puts it out. her deductible is $500. how much will karishma and the insurance company each pay? a. karishma pays $0, while the insurance company pays $500 b. karishma pays $0, while the insurance company pays $9,000 c. karishma pays $500, while the insurance company pays $8,500 d. karishma pays $500, while the insurance company pays $24,500

4. karishma has a renters insurance policy with a coverage limit of $25,000. while shes on vacation a fire breaks out, ruining $9,000 worth of possessions before the fire department puts it out. her deductible is $500. how much will karishma and the insurance company each pay? a. karishma pays $0, while the insurance company pays $500 b. karishma pays $0, while the insurance company pays $9,000 c. karishma pays $500, while the insurance company pays $8,500 d. karishma pays $500, while the insurance company pays $24,500

Answer

Explanation:

Step1: Understand deductible concept

The deductible is the amount the policy - holder pays first.

Step2: Calculate insurance company's payment

The loss is $9000$ and the deductible is $500$. So the insurance company pays $9000 - 500=$8500$, and Karishma pays the deductible amount of $$500$.

Answer:

C. Karishma pays $500, while the insurance company pays $8,500