Insurance Choices
What things are important to you when choosing between two policies. Which of these policies would you choose and why?
The property:
Single family, two-story home with partially finished basement.
3 Bed/2 bath 1400 sq ft. finished.
Built in 1920; stone foundation, aluminum siding.
Central air/forced air heating.
Updated kitchen, plumbing, electrical.
Additional building: barn can be used for storage with possible upgrade at a later date.
Purchase price: $94,000.
Commercial loan for 80% of value.
Rent $1050/month
The policy choices:
| Cost | Policy A $726 annually | Policy B $1,008 annually |
| Coverage: dwelling | $113,296 | $352,300 |
| Other Structures | $2,000 | $35,230 |
| Personal Property | $1,500 | $3,000 |
| Loss of Rents | $22,659 | $35,230 |
| Landlord Liability | $100,000 | $500,000 |
| Medical Payments | $500 | $5,000 |
| Deductible | $500 | $1,000 |
