Anissa Owns A Brick House In The Country Worth $$ 85,000$, And The Contents Of The House Are Valued At $$ 15,000$. Use The Table Below To Calculate Her Annual Property Insurance

Mar 10, 2025 by ADMIN 184 views

**Anissa's Annual Property Insurance Calculation**

Understanding the Problem

Anissa owns a brick house in the country worth $85,000, and the contents of the house are valued at $15,000. To calculate her annual property insurance, we need to consider the value of the house and its contents. The table below provides the necessary information to calculate the annual property insurance.

Calculating the Annual Property Insurance

Item	Value
House Value	$85,000
Contents Value	$15,000
Total Value	$100,000

To calculate the annual property insurance, we need to consider the total value of the house and its contents. The annual property insurance is typically calculated as a percentage of the total value.

Calculating the Annual Property Insurance Rate

The annual property insurance rate varies depending on the location, type of property, and other factors. For the purpose of this calculation, let's assume an annual property insurance rate of 0.5% to 1.5% of the total value.

Calculating the Annual Property Insurance

Using the assumed annual property insurance rate of 1% (0.5% to 1.5%), we can calculate the annual property insurance as follows:

Annual Property Insurance = Total Value x Annual Property Insurance Rate

Annual Property Insurance = $100,000 x 1%

Annual Property Insurance = $1,000

Calculating the Annual Property Insurance Premium

The annual property insurance premium is the amount paid by Anissa to the insurance company for the annual property insurance. The annual property insurance premium is typically calculated as a percentage of the annual property insurance.

Calculating the Annual Property Insurance Premium

Using the assumed annual property insurance premium rate of 10% to 20%, we can calculate the annual property insurance premium as follows:

Annual Property Insurance Premium = Annual Property Insurance x Annual Property Insurance Premium Rate

Annual Property Insurance Premium = $1,000 x 15%

Annual Property Insurance Premium = $150

Conclusion

In conclusion, Anissa's annual property insurance is calculated as follows:

Total Value: $100,000 (House Value + Contents Value)
Annual Property Insurance: $1,000 (1% of Total Value)
Annual Property Insurance Premium: $150 (15% of Annual Property Insurance)

The annual property insurance premium of $150 is the amount paid by Anissa to the insurance company for the annual property insurance.

Recommendations

Based on the calculation, it is recommended that Anissa:

Review and update her insurance policy: Anissa should review her insurance policy to ensure that it covers the total value of her house and its contents.
Consider increasing her insurance coverage: Anissa may want to consider increasing her insurance coverage to protect her assets from potential losses.
Shop around for insurance quotes: Anissa should shop around for insurance quotes to compare prices and find the best deal.

Limitations

The calculation of Anissa's annual property insurance is based on the assumed annual property insurance rate and premium rate. The actual annual property insurance rate and premium rate may vary depending on the insurance company and other factors.

Future Work

Future work may include:

Researching insurance companies: Researching insurance companies to compare prices and find the best deal.
Calculating insurance premiums for different scenarios: Calculating insurance premiums for different scenarios, such as a higher or lower total value.
Analyzing the impact of insurance premiums on Anissa's budget: Analyzing the impact of insurance premiums on Anissa's budget and making recommendations to optimize her insurance coverage.

Understanding the Problem

Q&A: Anissa's Annual Property Insurance Calculation

Q: What is the total value of Anissa's house and its contents?

A: The total value of Anissa's house and its contents is $100,000, which is the sum of the house value ($85,000) and the contents value ($15,000).

Q: How is the annual property insurance calculated?

A: The annual property insurance is calculated as a percentage of the total value. In this case, we assumed an annual property insurance rate of 1% (0.5% to 1.5%).

Q: What is the annual property insurance premium?

A: The annual property insurance premium is the amount paid by Anissa to the insurance company for the annual property insurance. We assumed an annual property insurance premium rate of 15% (10% to 20%).

Q: How much is Anissa's annual property insurance premium?

A: Anissa's annual property insurance premium is $150, which is 15% of the annual property insurance ($1,000).

Q: What are the factors that affect the annual property insurance premium?

A: The factors that affect the annual property insurance premium include:

Location: The location of the house and its contents can affect the annual property insurance premium.
Type of property: The type of property (e.g., brick house, wooden house) can affect the annual property insurance premium.
Insurance company: The insurance company can affect the annual property insurance premium.
Other factors: Other factors, such as the value of the house and its contents, can also affect the annual property insurance premium.

Q: How can Anissa optimize her insurance coverage?

A: Anissa can optimize her insurance coverage by:

Reviewing and updating her insurance policy: Anissa should review her insurance policy to ensure that it covers the total value of her house and its contents.
Considering increasing her insurance coverage: Anissa may want to consider increasing her insurance coverage to protect her assets from potential losses.
Shopping around for insurance quotes: Anissa should shop around for insurance quotes to compare prices and find the best deal.