1. Homeowner's Insurance

2. Things that could affect the cost of your house
insurance. (5)

3. Five main factors that determine the cost of homeowners
insurance
1) Replacement Cost
­ building (house)
­ contents
­ outbuildings
­ additional living expense
­ third party liability
2) Location ­ 4 main areas in Manitoba
­ Area 1 Metro Winnipeg, inside the city limits
­ Area 2 Protected, outside city limits but within 1000 ft of fire hall
­ Area 3 Semi­protected, outside area 1 and area 2, but within 8 miles of
a fire hall
­ Area 4 Unprotected, located more than 8 miles from fire hall

4. 3) Types of Coverage
­ Comprehensive, covers most things, some specific items must be
indicated
­ Broad/Standard, covers only specific perils
4) Amount of deductible
­ the lower your deductible the less you pay if you need to make a claim
­ the lower your deductible the higher your premium
5) Available Discounts
­ claim free
­ new home
­ burglar alarm
­ purchaser is over 50 or 60 years old

5. Raphael and Paula wish to insure their house in Metro
Winnipeg. The replacement cost is $195 000. What will their
premium be if they decide they want comprehensive insurance
with a $200 deductible?
http://www.edu.gov.mb.ca/k12/assess/archives/cm_wt_rp_08.pdf

6. Marlon and Gail have purchased a home with a replacement value
of $250 000 just outside of Winnipeg. The house is within 800
feet of a fire hydrant. They want to purchase standard insurance
with a $500 deductible. Calculate their annual premium.
http://www.edu.gov.mb.ca/k12/assess/archives/cm_wt_rp_08.pdf

7. Tenant Insurance
Maria has rented an apartment and wants to insure her
belongings for $35 000. She wants a standard policy with a
$200 deductible. Calculate Maria's annual premium.

8. Assignment #2, Page 21
Questions 1 ­ 7
Hard working Students