A heavy windstorm damaged a fence, which cost $8,000 to repair. The home insurance includes a $500 deductible. What will the insurance company pay if the coverage limit is $10,000 ?

Subtract the $500 deductible from the $8,000 repair cost: $8,000 − $500 = $7,500. The $10,000 coverage limit is higher than the remaining cost, so it does not reduce the payout. The insurance company will pay $7,500, choice A.

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