Ace the North Carolina Adjuster Exam 2025 – Adjust and Triumph with Confidence!

To determine how much the insurer will cover for Francis' roof repair, it is essential to first understand how deductibles work in the context of his insurance policy.

Francis has two types of deductibles: a fixed $500 deductible and a 3% deductible that applies to wind damage. Since roof damage is often associated with wind damage, we will calculate the applicable 3% deductible first.

The total repair cost for the roof is $22,000. To calculate the 3% deductible, we take 3% of the total repair cost:

3% of $22,000 = 0.03 × $22,000 = $660.

Now, we have two deductibles to consider: the fixed deductible of $500 and the 3% deductible of $660. For claims, typically, the larger deductible is applied, which means that in this scenario, the insurer would apply the 3% deductible of $660, as it exceeds the fixed deductible.

Next, we subtract the 3% deductible from the total roof repair cost:

Total repair cost: $22,000

Less: Wind damage deductible ($660)

Insurance payout = $22,000 - $660 = $21,340.

However, when looking at