Question

if no insurance claim is submitted for event 1, what is the owners out of pocket cost for the repair?
deductible: $1700.00

	event 1	event 2
description	termite damage	fence repair
repair cost	$8,000.00	$2,000.00

$?

Explanation:

Step1: Understand the problem

The owner has a repair cost for Event 1 (termite damage) of $8,000.00, and no insurance claim is submitted. So we need to find the out - of - pocket cost, which in this case (since no insurance is used) should be compared with the deductible? Wait, no—if no insurance claim is submitted, the owner pays the full repair cost? Wait, no, maybe I misread. Wait, the deductible is $1700, but if no insurance claim is made, then the owner's out - of - pocket is the repair cost? Wait, no, let's re - examine.

Wait, the problem says "if no insurance claim is submitted for Event 1". So without insurance, the owner has to pay the entire repair cost? Wait, the repair cost for Event 1 is $8,000.00. Wait, but maybe I made a mistake. Wait, the deductible is the amount the owner pays before insurance starts. But if no insurance claim is made, then the owner pays the full repair cost. Let's confirm: if you don't file an insurance claim, you don't get any insurance money, so you pay the entire repair bill.

Step2: Calculate the out - of - pocket cost

The repair cost for Event 1 is $8,000.00. Since no insurance claim is submitted, the owner's out - of - pocket cost is equal to the repair cost of Event 1.

Answer:

8000.00