please help
Leonard bought a homeowner's insurance policy when he purchased his new home. He pays an annual premium of $625 for property coverage of $200,000 and liability coverage of $300,000. His deductible is $1,100. Leonard pays this premium for 15 years, at which point Leonard’s dog bites a neighbor walking down his sidewalk. The neighbor sues Leonard for $32,000 in medical bills and pain and suffering. Leonard submits this as a claim to his homeowner’s insurance company. If the claim is approved, how much will Leonard’s insurance company pay the neighbor?

$30,900

$31,375

$32,000

$22,625

Question

please help
Leonard bought a homeowner's insurance policy when he purchased his new home. He pays an annual premium of $625 for property coverage of $200,000 and liability coverage of $300,000. His deductible is $1,100. Leonard pays this premium for 15 years, at which point Leonard’s dog bites a neighbor walking down his sidewalk. The neighbor sues Leonard for $32,000 in medical bills and pain and suffering. Leonard submits this as a claim to his homeowner’s insurance company. If the claim is approved, how much will Leonard’s insurance company pay the neighbor?
 
$30,900

$31,375

$32,000

$22,625

anonymous · Answer

@ankit042 @mathmate @mathstudent55 @NaCl

mathmate · Answer

I am not an expert on insurance.  
If the claim is approved by the insurance company (surprise!), then the claimed amount will be split between the insurance company (claimed amount - deductible) and the insured (deductible), as long as the claimed amount does not exceed the liability coverage.
The premium and the number of years of subscription should not affect the payout, unless there is an exclusion/limitation or a rider.