Texas Adjuster Practice Test 2026 – The All-in-One Guide to Exam Success!

To determine the deductible amount for Mary Johnson's insurance coverage, we need to calculate 2% of the Coverage A limit. The deductible is typically applied to the dwelling or structure coverage (Coverage A), not to coverage for other structures (Coverage B).

In this case, Coverage A has a limit of liability of $250,000. Taking 2% of this amount involves multiplying $250,000 by 0.02:

\[

250,000 \times 0.02 = 5,000

\]

Thus, the deductible amount comes out to $5,000. This is consistent with typical insurance practices where the deductible applies to the primary structure coverage, which in this case is Coverage A.

This method ensures that the policyholder bears a portion of the loss before the insurance coverage kicks in, aligning with standard insurance policies.