After a pipe burst, if the normal repair cost is $400 but new building codes require $500 in additional costs, how much will the DP-2 policy pay in total?

In this scenario, the total costs incurred due to the pipe burst must be evaluated in the context of the dwelling policy, specifically the DP-2 policy. The foundational repair cost is noted as $400, which represents the normal expense incurred to fix the damage. However, due to new building codes, there is an additional cost of $500 that must be factored in to bring the repair up to the current standards.

When assessing how much the DP-2 policy will pay, it is important to note that this policy typically covers not only the standard repair costs but also any additional expenses required to comply with local building codes following a covered loss. Therefore, in this case, the total payout by the policy is obtained by summing both the normal repair cost and the additional costs mandated by the updated codes.

Calculating this, you take the original repair cost of $400 and add the $500 in additional expenses, which results in a total of $900. This comprehensive payment ensures compliance with the new building regulations and covers the financial burden of the complete repair.

Thus, the correct answer reflects the total amount that the DP-2 policy will disburse in relation to the required repairs and compliance costs after the incident.