1. Cell phone use is prohibited.
Students:
Today is a red light day.
Cell phone use is prohibited.
This is your warning.

2. Find the assessed value, tax rate, and real estate tax.
1) A home has a market value of $ 95, The rate of assessment is 35 %. The tax rate is 43.5 mills.
Assessed Value =
$ 95, x 35 %
= $ 33,250.00
Tax Rate =
43.5 ÷ 1000 =
Real Estate Tax =
$ 33, x
= $
2) A home has a market value of $ 135, The rate of assessment is 23 %. The tax rate is 32 mills.
Assessed Value =
$ 135, x 23 %
= $ 31,050.00
Tax Rate =
32 ÷ 1000 =
Real Estate Tax =
$ 31, x 0.032
= $

3. 16.06
Homeowners Insurance

4. When you own a home, you will have to buy homeowners insurance to provide financial protection against various losses.
Basic coverage in homeowners insurance include four kinds of coverage:
1) Property Damage Coverage
covers damage to the home and personal property.
2) Personal Liability Coverage
protects you if someone alleges negligence which results in bodily injury or property damage.

5. 3) Medical Coverage
pays for medical expenses for nonfamily members accidently injured on your property.
4) Loss of Use Coverage
pays for the expenses for living away from home while your damaged house is repaired.
To recover full payment for any loss, the home must be insured for at least 80 % of its replacement value.
Replacement value is the amount required to reconstruct your home if it is destroyed.

6. Amount of Insurance on the Home
To calculate the minimum amount of coverage, use the formula:
Amount of Coverage on Home
= Replacement Value x Insured Percent
Replacement Value
Insured Percent
Amount of Insurance on the Home
$ 95,000.00
85 % $
$ 120,000.00
92 %
80,750.00
110,400.00
Insurance companies use the amount of coverage on your home to calculate the amount of coverage for each type of protection.
Amount of Coverage
= Amount of Coverage on Home x Percent Covered

7. Use the chart to the right.
Coverage
Percent of Coverage
Personal Property
55 %
Personal Liability
40 %
Loss of Use
10 %
A home has a replacement value of $ 115,000.00
It is insured for 85 % of the replacement value.
Find the amount of: insurance, coverage for personal property, coverage for personal liability, and the coverage for loss of use.
Insurance =
$ 115, x 85 %
= $ 97,750.00
Personal Property =
$ 97, x 55 %
= $ 53,762.50
Personal Liability =
$ 97, x 40 %
= $ 39,100.00
Loss of Use =
$ 97, x 10 %
= $ 9,775.00