Homeowners Insurance Answers

Zach is looking for a homeowners insurance policy for his new house. AAA Insurance company has offered him a plan that insures his home annually for $0.36 per $100 of value in the home. In order to make calculations easier, Thompson’s Insurance lists their annual homeowners insurance premium a bit differently, at $3.63 per $1,000 of value in the home. Zach’s house is worth $289,000. What should Zach be thinking as he chooses between the two insurance companies? a. $3.63 per $1,000 is approximately the same as $0.36 per $100. The premiums for the two insurance companies will be the same. b. The annual premium for his house would be cheaper through AAA. c. The annual premium for his house would be cheaper through Thompson’s. d. Since the two insurance companies list their premiums differently, the two cannot be compared. Please select the best answer from the choices provided

Tara and Levi are trying to decide between homeowners insurance policies offered by two different agencies. AAA Insurance has offered to insure their home for an annual premium of $0.38 per $100 with a $500 deductible. Thompson’s Insurance has offered to insure the same home for an annual premium of $0.26 per $100 with an deductible of $1,000.Insurance CompanyAnnual Premium (per $100)DeductibleAAA Insurance$0.38 $500 Thompson's Insurance$0.26 $1,000 The house Tara and Levi purchased is valued at $425,000. Which of the following statements accurately describes the difference between the two plans?a.AAA Insurance is cheapest if Tara and Levi experience an incident that results in severe damage or loss to their home. b.AAA Insurance would be cheapest if Tara and Levi can avoid any incidents that result in severe damage or loss to their home. c.Thompson’s Insurance is cheaper even if Tara and Levi experience an incident that results in severe damage or loss to their home.d.Thompson’s will be more expensive whether or not Tara and Levi experience an incident that results in severe damage or loss to their home.

Cesar’s annual homeowners insurance premium is $972.80. If his home is valued at $253,000, roughly how much is Cesar paying for homeowners insurance?a.$0.13 per $100 of valueb.$0.19 per $100 of valuec.$0.26 per $100 of valued.$0.38 per $100 of value

Which of the following is a cost homeowners insurance does not protect?a.The cost of repair or replacement of a home lost in a natural disaster.b.Additional living expenses required while your home is repaired after a disaster.c.Replacement costs for all contents in your home, including high cost electronics.d.The cost of medical expenses incurred by somebody getting injured on your property.

Renters insurance is different than homeowners insurance in that _____. a. unlike homeowner’s insurance, renter’s insurance will not cover items lost in a burglary. b. homeowner’s insurance protects the building of residence while renter’s insurance does not. c. renter’s insurance only applies to apartments when homeowner’s insurance only applies to houses. d. additional living expenses are covered by renter’s insurance but not by homeowner’s insurance. Please select the best answer from the choices provided

Rudy has been paying an annual homeowners insurance premium of $1,106.30 ($0.37 per $100 of value) since he first purchased his house. For the past six months, Rudy has completed some major improvements to his house to improve its overall value. If Rudy successfully adds $50,000 to the value of his house, what will his new annual homeowners insurance premium be? a.$185.00b.$315.00c.$1,291.30d.$1,351.14

Rachel just purchased a homeowners insurance policy for her new home that costs $0.43 per $100. Her home is worth $387,500. What is Rachel’s annual homeowners insurance premium?a.$1,666.25b.$2,208.75c.$8,802.33d.$9,011.63

In many cases, lenders allow homeowners to include their homeowners insurance premium with their monthly mortgage payment. Tim’s home is worth $279,500. If his homeowners insurance premium is $0.33 per $100, how much is added to his monthly mortgage payment for insurance? a. $7.69 b. $76.86 c. $92.35 d. $922.35 Please select the best answer from the choices provided

Allie and Sarah decided that they want to purchase renters insurance for the apartment they share. They made a list of all of the items to be covered by the insurance policy, along with their estimated values. If the items to be covered total more than $3000, the insurance company charges an annual premium of 23% of the total value of the items. If the items to be covered total $3000 or less, the insurance company charges an annual premium of 20% of the total value of the items. Using the list of items Allie and Sarah provided, determine their monthly renters insurance premium. Allie's Stuff Sarah's Stuff TV ($250) Stereo ($75) Stereo ($150) Bicycle ($250) CD's ($225) CD's ($130) DVD's ($385) DVD's ($300) Bicycle ($400) IPOD ($80) Microwave ($30) Computer ($675) Laptop Computer ($950) a. $65.00 b. $74.75 c. $325.00 d. $780.00 Please select the best answer from the choices provided

Which of the following will not help Robert lower his homeowners insurance premium?a.Increase the deductible on his policy.b.Remove replacement cost from his policy.c.Reduce the number of riders on his policy.d.Increase the total coverage of his home on his policy.