An insured has a homeowners policy and is assessed for the rebuilding cost of a community house. How much will her policy pay?

The correct answer is based on the typical coverage options found in a homeowners policy. Homeowners insurance generally covers damages to the insured's property and liability for injuries or damages to others. However, it does not usually extend to costs associated with community projects unless specifically included in the policy.

In many cases, homeowners insurance does not directly cover assessments for costs like rebuilding community facilities, as these are often considered communal expenses rather than individual responsibilities. That said, if the policy has a specific clause or rider that allows for such assessments to be covered, the limit of payment will depend on that specific policy language.

The $1,000 amount might represent a reasonable limit often set within certain policy types for community projects if coverage exists. Therefore, if the homeowners policy does include some provision for community house rebuilding costs, the insured might receive that amount under certain conditions. The assessment usually reflects a shared cost among multiple homeowners, which, if covered, would be within typical payout structures for such communal expenses.

Thus, if the context of the question assumes there is a provision in the policy for this circumstance, $1,000 would align with typical payout limits set up for community-related assessments.