What further indemnification may Melanie receive for her home after repairs total $79,500?

In assessing the total indemnification Melanie may receive after her home repairs, it's important to consider the nature of her insurance coverage, specifically whether she has replacement cost coverage or actual cash value coverage, and any deductibles that might apply.

Given that the repairs have totaled $79,500, the amount she can receive may depend on the policy limits and the deductible she agreed to when purchasing her insurance. If her policy provides replacement cost coverage up to a certain limit, she may be entitled to additional funds to cover the difference between her repair costs and the policy maximum.

In this case, if her total coverage or the maximum payout was $92,000, subtracting the $79,500 in repairs would leave her with $12,500 potentially available for further indemnification. However, if her policy has a deductible of $500, then her net recovery would indeed reduce to $12,000.

The correct choice reflects the amount of funds that remain available after considering the repair costs and any relevant policy provisions, assuming she is entitled to further compensation under her current insurance agreement. Thus, the answer shows a sound understanding of how insurance claims are calculated based on repair costs against the substantiated coverage amounts.