Personal Finance 1st Edition by Jack R. Kapoor

Exercise 5

Calculating Property Loss Claim Coverage. Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If $3,800 worth of jewelry and $2,800 worth of silverware were stolen from a family, what amount of the claim would not be covered by insurance? (Obj. 2)

Step 1 of 2

Calculate Property Loss Claim Coverage:

All variables are as per given information.

Total amount of claim not covered by insurance is the sum total of amount of claim not covered by insurance for jewellery and silverware.

Amount of claim not covered by jewellery and silverware is determined by subtracting the amount of insurance coverage from the stolen value of jewellery and silverware.