When calculating a tree removal loss, how much will the insurer pay if the loss includes three trees at $300 each and one tree at $600?

To find the correct amount the insurer will pay for the tree removal loss, you should first calculate the total value of the trees involved. The value of the three trees is $300 each, which totals $900 (3 trees x $300). The value of the fourth tree is $600. Adding these two amounts gives you a total of $1,500 (the $900 from the three trees plus the $600 from the fourth tree).

However, under most homeowners policies, tree removal coverage is often subject to specific limits, which may apply in different scenarios—for instance, a limit per tree or a total limit for all trees removed. If the total claim for tree removal exceeds a certain threshold set by the insurer, policy limits would come into play. It's essential to reference the specific policy limits for tree removal.

Given the context, if the loss includes these four trees, the correct payout in the absence of specific policy limits would be $1,500, but often policies may only cover a portion of this depending on the limits set. So in scenarios where limits apply, it’s plausible that the correct answer representing a realistic payout under standard policy provisions—considering policy payouts might be capped based on typical common limits—is $1,000.

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