What would be the final settlement amount for Bill's destroyed home valued at $235,000 if his policy has a limit of $225,000?

In this situation, the final settlement amount for Bill's destroyed home will align with the insurance policy limit rather than the home's market value. Although the home's value is assessed at $235,000, the insurance policy specifies a maximum coverage limit of $225,000. Insurance policies often include limits that cap the amount the insurer is obligated to pay in the event of a total loss.

In this case, because the policy limit is lower than the home's value, the insurer will only pay up to the limit of $225,000. This ensures that the insurer is not liable for more than what they have agreed to cover in the policy. Therefore, the final settlement amount will be equal to the limit of the policy, which is $225,000.