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
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
Section: Chapter Questions
Problem 1PS
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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*************
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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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