Your homeowner's coverage includes a deductible of $500. If storm damage to your roof is estimated to be $1,400, how much will you pay out of pocket?

When evaluating the situation with homeowner's insurance coverage, understanding the role of a deductible is key. A deductible is the amount you are responsible for paying before your insurance company will start covering the costs of a claim.

In this case, if the storm damage to your roof is estimated at $1,400 and you have a deductible of $500, you first need to pay that deductible amount out of pocket. This means you would pay $500 directly. The insurance company will then cover the remaining balance of the damage after your deductible has been met.

To break it down further:

• Total damage: $1,400

• Deductible: $500

• Amount covered by insurance: $1,400 - $500 = $900

Thus, your out-of-pocket expense would be the deductible amount of $500, which is why this option is the correct answer. Understanding how deductibles work is important for effective financial planning and managing potential future claims on your homeowner's insurance policy.