1. 6.4

2. Property Owners Insurance Premiums Terms to know: Homeowner Insurance Dwelling Other Structures Personal Property Additional Living Expense Personal Liability Medical Payments to Others Replacement Cost Policies Insurance Premium

3. Insurance Premium (Example) You insure your house for $89,000 at an annual rate of $0.51 per $100. 1. Find the number of $100 units in the insured amount $89,000/$100 = 890 (# of $100 units) 2. # of $100 units x rate = premium (round to nearest $) 890 x $0.51 = $453.90 = $454

4. Insurance Premium (A) You insure your house for $61,000 at an annual rate of $0.46 per $100. 1. Find the number of $100 units in the insured amount $61,000/$100 = 610 (# of $100 units) 2. # of $100 units x rate = premium (round to nearest $) 610 x $0.46 = $280.60 = $281

5. Insurance Premium (B) You insure your house for $43,000 at an annual rate of $0.74 per $100. 1. Find the number of $100 units in the insured amount $43,000/$100 = 430 (# of $100 units) 2. # of $100 units x rate = premium (round to nearest $) 430 x $0.74 = $318.20= $318

6. Renters Insurance Premiums Renters Policy Example….(page 244) Check your understanding ( page 244-245)

7. Collecting on Insurance Claims Terms/Formulas to know: Deductible Filing a claim Adjuster Face value Coinsurance Policy Amount paid by insurance company = (Face value/Required Amount of Coinsurance) x Loss

8. Collecting on Insurance Claims (Example) The Face value of your policy is $30,000 with a $1,000 deductible. If your loss was $7,800 how much would you receive from the insurance company? Loss – Deductible = Amount insurance company pays $7,800 - $1,000 = $6,800

9. Collecting on Insurance Claims (E) The Face value of your policy is $18,000 with a $250 deductible. If your loss was $10,200 how much would you receive from the insurance company? Loss – Deductible = Amount insurance company pays $10,200 - $250 = $9,950

10. Collecting on Insurance Claims (F) The Face value of your policy is $70,000 with a $500 deductible. If your loss was $82,000 how much would you receive from the insurance company? Loss – Deductible = Amount insurance company pays $70,000 - $500 = $69,500

11. Collecting on Insurance Claims (Example 2) Building value of $50,000 is insured for $24,000 under an 80% coinsurance policy. The building had damages of $7,200. What amount did the insurance company pay? Value x coinsurance % = required amount of coinsurance $50,000 x 80% = $40,000 Amount paid by insurance company = (Face value/Required Amount of Coinsurance) x Loss ($24,000/$40,000) x $7,200 = $4,320

12. Collecting on Insurance Claims (G) Building value of $65,000 is insured for $41,600 under an 80% coinsurance policy. The building had damages of $4,000. What amount did the insurance company pay? Value x coinsurance % = required amount of coinsurance $65,000 x 80% = $52,000 Amount paid by insurance company = (Face value/Required Amount of Coinsurance) x Loss ($41,600/$52,000) x $4,000 = $3,200

13. Collecting on Insurance Claims (H) Building value of $90,000 is insured for $46,800 under an 80% coinsurance policy. The building had damages of $42,000. What amount did the insurance company pay? Value x coinsurance % = required amount of coinsurance $90,000 x 80% = $72,000 Amount paid by insurance company = (Face value/Required Amount of Coinsurance) x Loss ($46,800/$72,000) x $42,000 = $27,300