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

2. Coverage
Percent of Coverage
Personal Property
55 %
Personal Liability
40 %
Garage
10 %
Find the amount of: insurance, coverage for personal property, coverage for personal liability, and the coverage for garage.
A home has a replacement value of $ 140, It is insured for 90 % of the replacement value.
Insurance =
$ 140, x 90 %
= $ 126,000.00
Personal Property =
$ 126, x 55 %
= $ 69,300.50
Personal Liability =
$ 126, x 40 %
= $ 50,400.00
Garage =
$ 126, x 10 %
= $ 12,600.00

3. Homeowners Insurance Premium
16.07
Homeowners Insurance Premium

4. When homeowners buy insurance, they will pay either a monthly or yearly premium.
The homeowners insurance premium is the
amount of money paid yearly for insurance coverage.
The insurance premium is affected by various factors.
1) the location
2) the type of construction (brick / frame)
3) the size of the house
4) how fire resistant the house is

5. Your home will be assigned a fire protection class.
This number reflects how fire resistant your home is and how close you are to a fire hydrant.
To find the amount of insurance, use the formula:
Amount of Insurance
= Replacement value x Insured Percent
Use this amount and the fire protection class to find the premium.

6. Amount of Insurance Coverage
Annual Premium
Brick Veneer
Wood Frame
Fire Protection Class
1 – 3
4 – 6
7 – 9
$ 120,000.00 $ $ $ $ $ $
$ 150,000.00 $ $ $ $ $ $
Find the amount of insurance and the annual premium of brick home that has a replacement value of $ 150, and is insured for 80 % and has a fire protection class of 6.
Amount of Insurance
= $ 150, x 80 %
= $ 120,000.00
Annual Premium = $

7. Amount of Insurance Coverage
Annual Premium
Brick Veneer
Wood Frame
Fire Protection Class
1 – 3
4 – 6
7 – 9
$ 120,000.00 $ $ $ $ $ $
$ 150,000.00 $ $ $ $ $ $
Find the amount of insurance and the annual premium of wood frame home that has a replacement value of $ 250, and is insured for 60 % and has a fire protection class of 9.
Amount of Insurance
= $ 250, x 60 %
= $ 150,000.00
Annual Premium = $