Jeremy's Equipment Breakdown Protection Coverage policy has a $500,000 limit and three deductibles. After a loss of $85,000, how much will Jeremy have to pay out of pocket?

To determine how much Jeremy must pay out of pocket after a loss of $85,000 under his Equipment Breakdown Protection Coverage with a limit of $500,000 and three deductibles, it's important to understand how deductibles function within insurance policies.

Deductibles are the amounts that a policyholder must pay before the insurance coverage kicks in to cover the remaining loss. If Jeremy has three deductibles, it's likely that he will have to pay each of these deductibles, given the claim he is making.

Let's assume that each deductible is a predetermined amount. If the total of the three deductibles is $10,000, then after the deductibles have been deducted, the insurance will cover the amount over and above that.

Considering the loss of $85,000, if Jeremy has three deductibles summing up to $10,000, he would need to pay this amount out of pocket before the insurance would cover the remaining loss. Thus, after he pays the total of the deductibles, the insurance would then cover the balance of the loss.

This aligns with the answer provided, indicating that Jeremy has to pay out of pocket a total of $10,000, which reflects the application of the deductibles to his loss amount. It's