Patricia has renters insurance with $⁢50,000 of personal property coverage and a $⁢1,000 deductible. If she experiences a loss of $⁢40,000 , how much will the insurance company pay her?

The $50,000 personal property limit is high enough to cover Patricia’s $40,000 loss, so the limit does not reduce the payment. Subtract the $1,000 deductible from the loss: $40,000 − $1,000 = $39,000. The insurance company will pay $39,000, which is choice D.

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