Scenario 2: Renters Insurance Sarah rents an apartment and wants to insure her personal belongings, valued at \( \$ 20,000 \). Her renters insurance policy costs \( \$ 0.80 \) per \( \$ 100 \) of coverage annually and includes a liability fee of \( \$ 75 \) per year. 1. Calculate the cost of the insurance for her personal belongings. 0 Formula: Cost \( =( \) Value of belongings \( / 100) \times \) Cost per \( \$ 100 \) 2. Add the liability coverage fee to determine the total annual premium. Total Cost \( = \) Cost for belongings + Liability fee

To calculate the cost of Sarah's renters insurance for her personal belongings valued at $20,000, we can use the provided formula. The cost for insuring her belongings is given by \( (20000 / 100) \times 0.80 = 200 \). Now, let's factor in the liability fee. The total annual premium is \( 200 + 75 = 275 \). So, the total cost of her renters insurance policy is $275 annually. Now wasn't that easy? With just a few calculations, Sarah can protect her precious belongings and have peace of mind! Did you know that renters insurance can cover more than just theft or damage to your property? It often includes personal liability coverage, which protects you in case someone gets injured in your rented space. This is why many landlords require it—safety first, folks! Renters insurance is frequently more affordable than people think! A basic policy typically ranges from $15 to $30 a month, depending on where you live and the amount of coverage you choose. It's a small price to pay for a whole lot of peace of mind—so don't skip on securing those belongings!