Registered Insurance Brokers of Ontario (RIBO) Exam 2026 – 400 Free Practice Questions to Pass the Exam

In the scenario presented, when a Comprehensive Homeowners policy covers a property with a limit of $200,000 for Coverage A and has a deductible of $250, the process for settling a claim after a total loss, such as a house burning down, involves factoring in the deductible.

When the home is totally destroyed, the insurer would determine the payout based on the policy limit minus the deductible. In this case, the total loss amount is $200,000. After applying the deductible of $250, the insurer is responsible for paying $199,750 to the policyholder. This payout reflects the subtraction of the deductible from the insured amount, which leaves the homeowner with the remaining balance after the loss has been accounted for.

Additionally, if there were costs associated with debris removal due to the loss, those could also be covered, as many homeowners insurance policies include coverage for such expenses; however, this would not alter the primary payment calculation tied to the Coverage A limit and the deductible.

Thus, the situation aligns perfectly with the correct answer, as it accurately describes the payout situation within the context of the given policy terms.