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Calculate the total cost of a fire insurance premium for a building and contents given the following. (Use Table 20.3.)   *******TABLE INCLUDED*************   Rating of area Class Building Contents Total premium cost 3 B $90,000 $40,000

Calculate the total cost of a fire insurance premium for a building and contents given the following. (Use Table 20.3.)   *******TABLE INCLUDED*************   Rating of area Class Building Contents Total premium cost 3 B $90,000 $40,000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Calculate the total cost of a fire insurance premium for a building and contents given the following. (Use Table 20.3.)

 

*******TABLE INCLUDED*************

 

Rating of area Class Building Contents Total premium cost
3 B $90,000 $40,000
**Table 20-3: Fire Insurance Rates** This table provides fire insurance rates per $100 of coverage for buildings and contents, categorized into two classes of buildings: Class A and Class B. The rates vary depending on the rating of the area. Below is a breakdown of the information presented: - **Rating of Area:** This is a classification from 1 to 3, likely indicating different risk levels or zoning areas where the insured property is located. - **Class A:** - **Building Rates:** - Rating 1: $0.28 - Rating 2: $0.33 - Rating 3: $0.41 - **Contents Rates:** - Rating 1: $0.35 - Rating 2: $0.47 - Rating 3: $0.50 - **Class B:** - **Building Rates:** - Rating 1: $0.41 - Rating 2: $0.50 - Rating 3: $0.61 - **Contents Rates:** - Rating 1: $0.54 - Rating 2: $0.60 - Rating 3: $0.65 The table is structured to provide a quick comparison between Class A and Class B buildings, highlighting how insurance rates increase with higher area ratings and differ between building types and their contents.
Transcribed Image Text:**Table 20-3: Fire Insurance Rates** This table provides fire insurance rates per $100 of coverage for buildings and contents, categorized into two classes of buildings: Class A and Class B. The rates vary depending on the rating of the area. Below is a breakdown of the information presented: - **Rating of Area:** This is a classification from 1 to 3, likely indicating different risk levels or zoning areas where the insured property is located. - **Class A:** - **Building Rates:** - Rating 1: $0.28 - Rating 2: $0.33 - Rating 3: $0.41 - **Contents Rates:** - Rating 1: $0.35 - Rating 2: $0.47 - Rating 3: $0.50 - **Class B:** - **Building Rates:** - Rating 1: $0.41 - Rating 2: $0.50 - Rating 3: $0.61 - **Contents Rates:** - Rating 1: $0.54 - Rating 2: $0.60 - Rating 3: $0.65 The table is structured to provide a quick comparison between Class A and Class B buildings, highlighting how insurance rates increase with higher area ratings and differ between building types and their contents.
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