How much will Greta receive from her insurer after a tornado damage that includes a $500 deductible?

To determine how much Greta will receive from her insurer after the tornado damage, it is essential to understand how deductibles work in an insurance policy. A deductible is the amount that the insured must pay out of pocket before the insurance coverage kicks in.

If the total damage from the tornado is assessed at $31,000, Greta will need to subtract her deductible of $500 from this amount. Therefore, the calculation would be:

Total damage: $31,000
Minus deductible: -$500
Amount payable by the insurer: $30,500

This calculation clearly shows that after accounting for the deductible, Greta would receive $30,500 from her insurance company for the damage caused by the tornado. This understanding reflects how deductibles affect claims and highlights the importance of knowing your deductible when filing an insurance claim.