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

In this scenario, the deductible plays a crucial role in determining how much the insurance payment will be. A deductible is the amount that you must pay out of pocket before the insurance coverage kicks in.

Here, the homeowner’s insurance has a deductible of $500, which means that for any claims, you will need to pay the first $500. The estimated damage to the roof is $1,400. To find out how much the insurance will pay, one must subtract the deductible from the total estimated damage.

Calculating this involves taking the total damage amount of $1,400 and subtracting the deductible of $500:

$1,400 (total damage) - $500 (deductible) = $900.

This calculation indicates that the insurance will cover $900 of the roof damage after the deductible has been accounted for. Therefore, the total coverage provided by the insurance for this situation is indeed $900.