Rowena has a $150,000 basic homeowners insurance policy with a $1000 deductible on her house since she purchases no additional riders for jewelry flooding exedra her premium payment of $100 per month. if a family heirloom ring worth $100,000 is stolen from her home how much is insurance company obligated to pay for this claim

$99,000 Looking at Rowena's insurance policy, the first thing to look at is her deductible and her total loss. The deductible is the amount "out of pocket" that Rowena will lose even if the insurance policy pays. So take the $100,000 loss and subtract from it the $1000 deductible, giving $100,000 - $1,000 = $99,000 Now the $99,000 is the maximum amount of money that the insurance company will pay. The next thing to look at is if that loss exceeds the amount of the insurance policy. Since the policy is for up to $150,000 and $150,000 is greater than $99,000, the insurance company will pay the entire $99,000