What is the expected payout for Diana under her DP-2 policy for a total loss of $5,200?

Under a DP-2 policy, which is a type of dwelling policy used primarily for rental properties or houses that are not owner-occupied, the payout for a total loss is influenced by specific coverage limits and policy features. The DP-2 policy typically covers a range of perils and may include provisions for actual cash value or replacement cost, depending on how the policy is written.

Considering the scenario presented, if Diana is expecting a payout of $2,500 for a total loss of $5,200, this amount could represent a deductible or limit defined in her policy for a partial payout scenario. In this instance, the expectation of receiving a payout of $2,500 when the total loss is $5,200 suggests that there may be a cap on the amount reimbursed based on specific conditions within her policy.

Losses under a DP-2 policy are assessed, and adjustments may come into play due to factors such as an applicable deductible, coverage limits, or depreciation considerations. The expected payout of $2,500 indicates that Diana's policy might limit compensation relative to the total damage reported, aligning with standard practices for such insurance policies.

In contrast, the other amounts do not align with typical scenarios for a DP-2 policy. For instance