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
6. PJ and Dearly 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
