Lesson 23: In the U.S., 97% of homeowners have home owners insurance. The average premium is $1083 per year. Home owner's insurance is not required by law, but it is usually required by the mortgage company. The average claim is $8787, with wind damage being the most common at 25%. These exclude hurricanes and severe storms. Theft, at 6%, is the least common. Fire is the costliest claim. There is an average of 355,400 house fires per year causing $6.5 billion in damage. Only 37% of renters have renters insurance. the average premium is $144 per year. Renters insurance insures just the items inside the building, not the building itself. The average cost of auto insurance is $1500. The average insurance claim was $4100. Even though auto insurance is required by law, 13% of drivers are uninsured. Use this data to discuss the pros and cons of auto and homeowner's/renter's insurance. In addition, make sure the following questions are covered in the answer. What would happen if a homeowner had no homeowner's insurance? What would happen if a renter had no renter's insurance? Why do mortgage companies require homeowner's insurance?

Lesson 24: Based on what you have learned in this lesson, compare and contrast gas and electric services (i.e., uses, pros, cons, rates). Which service would you choose and why?

FINANCIAL MATH