Leith bought a homeowner's insurance policy when he purchased his new home. He pays an annual premium of $775 for property coverage of $250,000 and liability coverage of $350,000. His deductible is $1,300. Leith pays this premium for 11 years, at which point Leith’s dog bites a neighbor walking down his sidewalk. The neighbor sues Leith for $27,000 in medical bills and pain and suffering. Leith submits this as a claim to his homeowner’s insurance company. If the claim is approved, how much will Leith’s insurance company pay the neighbor?
$26,225
$27,000
$25,700
$18,475
My answer is $25,700
2 answers
I agree
Yes the answer is $25,700.
To solve it, you’ll take the deductible (1,300) and you’ll subtract it from what the neighbor is suing for (27,000). That number is how much the insurance will pay. (A deductible is how much you have to pay if a claim is approved, the insurance will pay the rest of the money afterwards)
To solve it, you’ll take the deductible (1,300) and you’ll subtract it from what the neighbor is suing for (27,000). That number is how much the insurance will pay. (A deductible is how much you have to pay if a claim is approved, the insurance will pay the rest of the money afterwards)
1 answer