To solve this problem, we'll first calculate the amount of loss that would be covered by the Diems' homeowner's policy for each type of property, based on their policy limits. Then, we will calculate how much they will receive after applying the deductible.

Part 1: Calculating the covered loss for each item

1. Currency:
   The Diems' policy has a limit of $250 for currency. They lost $347 in cash, but the maximum amount the policy will cover is $250.

   • Covered amount: $250

2. Jewelry:
   The policy has a $1,000 limit for jewelry, but $2,548 worth of jewelry was stolen. Therefore, only $1,000 will be covered by the policy.

   • Covered amount: $1,000

3. Pewterware (part of the $2,500 limit on gold, silver, and pewter):
   They lost $1,438 worth of pewterware, which is below the $2,500 limit for this category, so the entire $1,438 is covered.

   • Covered amount: $1,438

Total Covered Loss:

The total amount of loss covered by the policy is the sum of these covered amounts: $\text{Total Covered Loss} = 250 + 1,000 + 1,438 = 2,688$

Part 2: Applying the deductible

The Diems' deductible is $750, meaning that this amount will be subtracted from the total covered loss to determine the amount they will receive.

$\text{Amount they will receive} = \text{Total Covered Loss} - \text{Deductible}$ $\text{Amount they will receive} = 2,688 - 750 = 1,938$

Final answers:

• Part 1: The total amount of loss covered by the Diems' homeowner's policy is $2,688.
• Part 2: After applying the deductible, the Diems will receive $1,938 on their claim.

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Do you want more details on how insurance limits or deductibles work?

Here are 5 follow-up questions:

1. What is the purpose of having policy limits in homeowner's insurance?
2. How do personal property floaters extend coverage for specific items?
3. What other types of property might have special limits in a typical homeowner's policy?
4. How does a deductible affect the cost of homeowner's insurance premiums?
5. What steps can be taken to increase coverage for valuable items like jewelry?

Tip: It's a good idea to review your insurance policy regularly to ensure it covers all of your valuables adequately!