Calculate the total cost of a fire insurance premium for a building and contents given the following. (Use Table 20.3.)Rating of areaClassBBuilding$ 100,000 $Contents50,000Total premium cost

Here,Building cost is $70,000Content cost is $20,000Class BRating of Area is 1

Answered: Calculate the total cost of a fire…

Calculate the total cost of a fire insurance premium for a building and contents given the following. (U Rating of area Class B Building $ 100,000 $ Contents 50,000 Total premium cost

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 11CDQ

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Concept explainers

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.

Question

Calculate the total cost of a fire insurance premium for a building and contents given the following. (Use Table 20.3.)
Rating of area
Class
B
Building
$ 100,000 $
Contents
50,000
Total premium cost

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