answer:

$107,000. The deductible applies to the loss ($125,000), not to the amount of insurance.

The Question:

The insured's covered building, with a value of $125,000, insured for $100,000, was a total loss from a covered cause of loss. Cost of removing debris, after loss, was $7,000. The policy deductible is $5,000. With no other coverage issues, how much is payable to the insured?

can you please explain this i am confused. is the value not an important fact ? and how does the deductable come into play regarding commercial property ?

unit 6

thank you

cindy