Homeowner's Insurance
Things that could affect the cost of your house insurance. (5)
Five main factors that determine the cost of homeowners insurance
1) Replacement Cost
building (house) contents outbuildings additional living expense third party liability
2) Location 4 main areas in Manitoba
Area 1 Metro Winnipeg, inside the city limits Area 2 Protected, outside city limits but within 1000 ft of fire hall Area 3 Semiprotected, outside area 1 and area 2, but within 8 miles of
a fire hall Area 4 Unprotected, located more than 8 miles from fire hall
3) Types of Coverage
Comprehensive, covers most things, some specific items must be indicated
Broad/Standard, covers only specific perils
4) Amount of deductible the lower your deductible the less you pay if you need to make a claim the lower your deductible the higher your premium
5) Available Discounts claim free new home burglar alarm purchaser is over 50 or 60 years old
Jeric and Allison wish to insure their house in Metro Winnipeg. The replacement cost is $195 000. What will their premium be if they decide they want comprehensive insurance with a $200 deductible?
http://www.edu.gov.mb.ca/k12/assess/archives/cm_wt_rp_08.pdf
PJ and Dearly have purchased a home with a replacement value of $250 000 just outside of Winnipeg. The house is within 800 feet of a fire hydrant. They want to purchase standard insurance with a $500 deductible. Calculate their annual premium.
http://www.edu.gov.mb.ca/k12/assess/archives/cm_wt_rp_08.pdf
Tenant Insurance
Ally has rented an apartment and wants to insure her belongings for $35 000. She wants a standard policy with a $200 deductible. Calculate Ally's annual premium.
Assignment #2, Page 21
Questions 1 7
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