10
QuizMultiple Choice

Homeowners Insurance

Question 10 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Stephanie has a homeowners insurance policy for her $355,000 home with an annual premium of $0.42 per $100 of value and a deductible of $500. Under this policy, in the event of a major mishap, Stephanie would have a total annual out-of-pocket expense of . Stephanie would like to lower her premium by increasing her deductible. If Stephanie wants to increase her deductible to $1000, what annual premium would result in an annual out-of-pocket expense that is about the same as her current plan?

Question illustration
Answer
A
$0.16 per $100 of value
B
$0.28 per $100 of value
C
$0.35 per $100 of value
D
$0.46 per $100 of value
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