Question

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