Question

alculating insurance premium in high-risk areas
a house valued at $350,000 is in a high-risk flood area, which increases the home insurance premium rate to 0.8%
what is the annual premium for this home insurance?
$2,800 $2,400 $2,600 $3,000

Explanation:

Step1: Recall Premium Formula

Premium = Value × Rate. Here, value = $350,000, rate = 0.8% = 0.008.

Step2: Calculate Premium

Premium = \( 350000 \times 0.008 \) = \( 2800 \).

Answer:

$2,800