Understanding Home Insurance Deductibles

The video tutorial explains how Armando's home insurance deductible works. It details the process of calculating both Armando's payment and the insurance company's payment for a $22,000 claim. The tutorial includes a step-by-step subtraction process to determine the insurance company's payment of $18,500 after Armando pays his $3,500 deductible. The video concludes with a summary of the final payments.

What is the deductible amount in Armando's home insurance policy?

• $2,500

• $3,000

• $3,500

• $4,000

What happens if the claim amount is less than the deductible?

• The insurance company pays half the claim

• The insurance company pays the full claim

• Armando pays nothing

• Armando pays the full claim

What is the purpose of a deductible in an insurance policy?

• To share the cost of a claim between the insured and the insurer

• To increase the insurance company's profit

• To eliminate small claims

• To reduce the number of claims

If Armando files a claim, how much will he pay out of pocket?

• The full claim amount

• The deductible amount

• Half of the claim amount

• Nothing

How does the insurance company calculate its payment?

• By dividing the claim by the deductible

• By multiplying the claim by two

• By subtracting the deductible from the claim

• By adding the deductible to the claim

How does the deductible affect the insurance company's payment?

• It increases the payment

• It decreases the payment

• It has no effect

• It doubles the payment

What is the first step in the subtraction process to find the insurance company's payment?

• Subtracting in the hundreds place

• Subtracting in the tens place

• Subtracting in the ones place

• Subtracting in the thousands place

Why is it necessary to perform an exchange in the subtraction process?

• To make the numbers larger

• To make the numbers smaller

• To simplify the calculation

• Because you cannot subtract a larger number from a smaller one

What is the final amount the insurance company will pay for Armando's claim?

• $18,500

• $19,000

• $20,000

• $22,000

What is the result of the subtraction process in the video?

• $18,000

• $18,500

• $19,000

• $19,500