1. Monthly Apartment Costs
Section 4.5

2. Tenant Insurance
The landlord’s insurance covers only the building and not the tenants belongings
Tenants must have their own insurance against losses to their belongings from fire, theft, etc

3. Skills Check Taxes can be charged on insurance premiums
Calculate the following with tax per year
$18 a month
$215 a year
$196 a year
$16.80 per month
$178 a year

4. Example
Natasha estimates the value of her belongings to be $20,000. Her insurance premium is $162 a year. How much per month (including tax) should she budget for insurance?

5. Example
Insurance companies suggest that you should photograph or videotape your belongings and keep an inventory list in a safe place (like a safety deposit box)
Why would they say this?

6. Example
Insurance normally covers liability insurance. If someone gets hurt in your apartment you could be held responsible and sued. If you are negligent and cause damage to another apartment, another tenant’s belongings, etc you could also be sued. Liability protects you from these costs.

7. Continued…
Most of the time you have a million dollars in liability insurance
What does that mean?
Insurance companies tend to have a deductable (the amount you pay if you need to use the insurance). Which would have a higher premium? Why?
$300 deductable or $350 deductable?

8. You Try:
Page 79
#5,6,7