State Farm Fire Independent Policy Practice Exam

What would be the total amount the insured could claim for hotel expenses due to evacuation for three weeks at $500 per week?

1. $2,000

2. $1,500

3. $1,200

4. $1,000

The correct answer is: $1,500

To determine the total claim amount for hotel expenses due to evacuation, the calculation involves multiplying the number of weeks the insured is evacuated by the cost per week for hotel expenses. In this case, the insured is evacuated for three weeks, and the cost of hotel expenses per week is stated as $500. Therefore, you multiply: 3 weeks × $500 per week = $1,500. This total of $1,500 reflects the correct amount the insured could claim for their hotel expenses during the evacuation period. The amount accurately accounts for the full duration of the evacuation and the expenses incurred per week.