Cell phone use is prohibited. Students: Today is a red light day. Cell phone use is prohibited. This is your warning.

Find the assessed value, tax rate, and real estate tax. 1) A home has a market value of $ 95,000.00. The rate of assessment is 35 %. The tax rate is 43.5 mills. Assessed Value = $ 95,000.00 x 35 % = $ 33,250.00 Tax Rate = 43.5 ÷ 1000 = 0.04350 Real Estate Tax = $ 33,250.00 x 0.04350 = $ 1446.38 2) A home has a market value of $ 135,000.00. The rate of assessment is 23 %. The tax rate is 32 mills. Assessed Value = $ 135,000.00 x 23 % = $ 31,050.00 Tax Rate = 32 ÷ 1000 = 0.032 Real Estate Tax = $ 31,050.00 x 0.032 = $ 993.60

16.06 Homeowners Insurance

When you own a home, you will have to buy homeowners insurance to provide financial protection against various losses. Basic coverage in homeowners insurance include four kinds of coverage: 1) Property Damage Coverage covers damage to the home and personal property. 2) Personal Liability Coverage protects you if someone alleges negligence which results in bodily injury or property damage.

3) Medical Coverage pays for medical expenses for nonfamily members accidently injured on your property. 4) Loss of Use Coverage pays for the expenses for living away from home while your damaged house is repaired. To recover full payment for any loss, the home must be insured for at least 80 % of its replacement value. Replacement value is the amount required to reconstruct your home if it is destroyed.

Amount of Insurance on the Home To calculate the minimum amount of coverage, use the formula: Amount of Coverage on Home = Replacement Value x Insured Percent Replacement Value Insured Percent Amount of Insurance on the Home $ 95,000.00 85 % $ $ 120,000.00 92 % 80,750.00 110,400.00 Insurance companies use the amount of coverage on your home to calculate the amount of coverage for each type of protection. Amount of Coverage = Amount of Coverage on Home x Percent Covered

Use the chart to the right. Coverage Percent of Coverage Personal Property 55 % Personal Liability 40 % Loss of Use 10 % A home has a replacement value of $ 115,000.00 It is insured for 85 % of the replacement value. Find the amount of: insurance, coverage for personal property, coverage for personal liability, and the coverage for loss of use. Insurance = $ 115,000.00 x 85 % = $ 97,750.00 Personal Property = $ 97,750.00 x 55 % = $ 53,762.50 Personal Liability = $ 97,750.00 x 40 % = $ 39,100.00 Loss of Use = $ 97,750.00 x 10 % = $ 9,775.00