Homeowners Insurance – Flashcards
Unlock all answers in this set
Unlock answersquestion
Renters insurance is different than homeowners insurance in that _____.
answer
not a or c
question
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.
answer
not a
question
Susan is paying $0.30 per $100 on her $483,000 home in homeowners insurance annually. If her annual homeowners insurance premium is divided into twelve equal monthly installments to be included on each of her monthly mortgage payments of $2128.00, what is her total monthly payment?
answer
a
question
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.
The house Tara and Levi purchased is valued at $425,000. Which of the following statements accurately describes the difference between the two plans?
answer
c
question
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?
answer
not a
question
Which of the following will not help Robert lower his homeowners insurance premium?
answer
d
question
Ben just purchased a house in an older neighborhood. After talking to several neighbors across the street, he found that he is paying much more in homeowners insurance than other homeowners in the neighborhood.
Ben's house is about 30 years old. It is made of wood framing and stucco texture. It has all of it's original plumbing and electrical work. The brick wall at the back of his back yard separates his yard from a drainage wash.
Which of the following is not a reasonable argument for the insurance company to use to justify Ben's higher homeowners insurance premium?
answer
a
question
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?
answer
not a
question
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?
answer
d
question
Jordy was living in a third story apartment in his complex. Up there he was paying an annual renters insurance premium of $325.00. When an opportunity to move to the ground floor came up, he jumped on it, but found out that, since burglaries are more common on ground floor apartments, his renters insurance premium would go up by 18%. What is his new annual renter's insurance premium.
answer
d