Louisiana P&C Adjuster Practice Exam

To determine how much of the damage is not covered by Ted's hurricane insurance, it's important to consider the terms and conditions of his policy. Typically, hurricane insurance includes certain exclusions, deductibles, and limits on coverage. The correct answer indicates that $4,000 of the damage is not covered, which likely reflects the specific deductible applied to Ted's policy.

Insurance policies usually require the policyholder to cover damages up to a certain amount before the policy kicks in. If Ted incurred a total amount of damage, and after applying the deductible, it is revealed that he is responsible for $4,000, it indicates that this specific portion must be paid out of pocket before the insurance will cover the remaining balance.

This reflects a common scenario in insurance practices where not all damages are compensated, and understanding deductibles is crucial in evaluating coverage after an event such as a hurricane.