What would be the payout if an insured drops a heavy box, causing $1,000 of damage to their home?

The correct answer reflects the standard procedure in homeowner's insurance policies regarding the payment for claims. In this case, if an insured individual drops a heavy box that causes $1,000 worth of damage to their home, the insurance payout would indeed be $1,000 minus the deductible amount.

Homeowners' insurance policies typically require the insured to pay a deductible before the insurance coverage kicks in. The deductible is a predetermined amount that the insured agrees to pay out-of-pocket for covered damages. In this scenario, if the damage amounts to $1,000, the payout would be calculated after applying the deductible. For instance, if the deductible were $500, the insurance company would pay $500 ($1,000 damage - $500 deductible).

Thus, the understanding of how deductibles function in relation to the total damage gives clarity to why the answer involving the deductible is accurate. It emphasizes the necessity for policyholders to keep in mind their specific deductible amounts when assessing potential insurance payouts.