A corn farmer has a revenue insurance policy that guarantees a revenue level of $925 per acre. The table below provides the risk profile for the farmer. Complete table below by calculating the indemnity payment for each weather condition scenario, and then calculate the fair premium for the policy. Yield Price Revenue Weather Revenue Insurance Probability Conditions (bushels/acre Indemnity ($/bushel) ($/acre) Drought (very 0.05 95 $8.00 $760 dry) 0.10 Dry 135 $6.50 $878 Flooding (very 0.05 150 $6.00 $900 wet) 0.10 Wet 190 $5.00 $950 0.5 Normal 210 $4.80 $1,008 Above 0.15 240 $4.00 $960 Average 0.05 Excellent 280 $3.50 $980 Fair Premium =

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Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.