Question

Jill paid an annual premium of $2,000 in total coverage for her homeowner's insurance, including $250,000 in damage coverage and $250,000 in liability coverage. Ten years into her policy, a friend fell off a ladder while working on the roof of her house and claimed $75,000 in medical expenses. Eleanor's insurance company paid the claim.

Answer 1

No, the cost of the annual premium for 10 years was less than the accident claims. She paid $2,000 insurance/year x 10 years=$20,000 which is less than the accident insurance claim of $75,000.

Answer 2

because she had $250,000 worth of Liability Coverage