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Insurance

Insurance. Why would I insure the contents of my house ?. I may be burgled. My freezer may stop working and I could loose all my food. I may damage my carpets. Why should I insure my buildings ?. My house may catch fire. My house may be damaged in a storm. My house may be flooded.

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Insurance

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  1. Insurance Why would I insure the contents of my house ? I may be burgled My freezer may stop working and I could loose all my food I may damage my carpets

  2. Why should I insure my buildings ? My house may catch fire My house may be damaged in a storm My house may be flooded

  3. Household insurance Two types of policies Contents Buildings We insure our property against events which may or not happen We pay a sum of money to an insurance company each year This money is called a premium. If my house contents are stolen or damaged the insurance company will pay out a sum of money to replace or repair the items If my house is damaged a sum of money will be paid out for any repairs

  4. How much will my premium cost? The cost depends on the value of your property and the value of your contents You are told how much your premium will be to insure contents or buildings for each £1000 of their value Now multiply this premium by the number of thousands you wish to insure your property for

  5. Example: ‘ Be safe’ insurance company Buildings-----£2.60 per £1000 Contents-----£5.35 per £1000 How much will it cost to insure a house valued at £ 64000 , for one year ? Value Premium £1000 £2.60 64 X £2.60 £64000 £166.40

  6. The value of my contents is £25000. How much would it cost to insure them for a year ? ValuePremium £1000 £5.35 £25000 25 X £5.35 £133.75 Pg 188 –190 Ex 4

  7. Monthly premium If the buildings and contents are insured by the same insurance company you pay one premium per year Total premium = premium for contents + premium for buildings If this premium is too much for you to pay in one lump sum you can pay by 12 monthly instalments but this may incur the additional cost of interest How you pay is your own choice

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