Rowena has a $150,000 homeowner's insurance policy with a $1,000 deductible on her house. Her premium payment is $100 per month. If she makes a $5,000 claim on the policy in a given year, how much will she pay out of pocket in premiums and deductible that year?
$2,200- Rowena will pay $100 per month for 12 months, which will equal $1,200. Then if she makes a $5000 claim, she will have to pay a $1,000 deductible. Therefore, in a year, Rowena will pay the insurance company $2,200.
