Question
Simon needs to buy homeowners insurance on his house, which is valued at $580,000. What is his estimated annual homeowners insurance premium?
$2,030
$870
$1,450
$580
$2,030
$870
$1,450
$580
Answers
GPT-4o mini
The estimated annual homeowners insurance premium is typically calculated as a percentage of the home's value. While the exact percentage can vary based on location, the type of coverage, and other factors, a common estimate ranges from 0.25% to 1% of the home's value.
To get a rough estimate, let's assume a general rate of 0.3% for calculation purposes:
\[
\text{Homeowners Insurance Premium} = \text{Home Value} \times \text{Rate}
\]
\[
\text{Homeowners Insurance Premium} = 580,000 \times 0.003 = 1,740
\]
However, given the provided options, the estimated premium should be closer to the rates commonly provided, which might average around 0.25% to 0.5%.
Calculating with 0.5% (a more generous approximation):
\[
\text{Homeowners Insurance Premium} = 580,000 \times 0.005 = 2,900
\]
None of the options match that directly, but for a conservative number, 0.25% would yield:
\[
\text{Homeowners Insurance Premium} = 580,000 \times 0.0025 = 1,450
\]
Among your options:
- $2,030
- $870
- $1,450
- $580
$1,450 appears to be the most plausible estimate based on the typical coverage percentages. Therefore, Simon's estimated annual homeowners insurance premium is likely:
**$1,450**.
To get a rough estimate, let's assume a general rate of 0.3% for calculation purposes:
\[
\text{Homeowners Insurance Premium} = \text{Home Value} \times \text{Rate}
\]
\[
\text{Homeowners Insurance Premium} = 580,000 \times 0.003 = 1,740
\]
However, given the provided options, the estimated premium should be closer to the rates commonly provided, which might average around 0.25% to 0.5%.
Calculating with 0.5% (a more generous approximation):
\[
\text{Homeowners Insurance Premium} = 580,000 \times 0.005 = 2,900
\]
None of the options match that directly, but for a conservative number, 0.25% would yield:
\[
\text{Homeowners Insurance Premium} = 580,000 \times 0.0025 = 1,450
\]
Among your options:
- $2,030
- $870
- $1,450
- $580
$1,450 appears to be the most plausible estimate based on the typical coverage percentages. Therefore, Simon's estimated annual homeowners insurance premium is likely:
**$1,450**.