Question

Assume you own a wood house in the country that is worth $200,000, using the

table below, what would be your annual premium to insure.
Annual Premium per $100 of coverage
Brick
Area
rating
City
0.39
Suburb 0.45
Rural
0.6
Steel
|Mixed
Wood
Building Contents Building Contents Building
Contents
Building |
Contents
0.43
|05
054
0.55
0.52
0.56
0.63
0.72
0.69
0.71
0.8
0.89
0.65
0.74
0.91
0.66
0.76
0.83
0.85
1
1.02
• $1,320
• $1,660
• $2,000
О $2,500

Answer 1

Based on the given table, the annual premium per $100 of coverage for a wood house in the country would be 0.74.

To calculate the annual premium for the $200,000 house, we first need to determine the coverage amount. Assuming a coverage of 80% of the house's value, the coverage amount would be:

Coverage amount = 80% of $200,000 = $160,000

Next, we can calculate the annual premium as follows:

Annual premium = (Coverage amount / $100) x Annual premium per $100 of coverage

= ($160,000 / $100) x 0.74

= $1,184

Therefore, the annual premium to insure the $200,000 wood house in the country would be $1,184.