Real Estate Council of Alberta Fundamentals Practice Exam

What is the first deductible amount for claims under the Real Estate Insurance Exchange (REIX)?

1. $1,500

2. $3,500

3. $5,000

4. $7,000

The correct answer is: $3,500

The first deductible amount for claims under the Real Estate Insurance Exchange (REIX) is indeed $3,500. This deductible reflects the amount that a claimant must pay out of pocket before REIX will cover the remaining costs related to a claim. The specific deductible amount is crucial for both real estate professionals and their clients because it acts as a threshold that affects how claims are processed and the overall financial risk associated with various real estate transactions. Understanding deductible amounts is essential for managing expectations regarding insurance coverage, especially in the real estate sector where property transactions often involve significant financial stakes. The choice of $3,500 as the initial deductible aligns with common practices in the industry, serving as a balance between affordability for the insured and the insurance provider's need to mitigate losses from smaller claims.