Gavin’s apartment is located on the

Diane: Good morning, Diane Davies. Can I help you?
Gavin: Yes, I’d like to get some insurance for the contents of my home.
Diane: Fine. When did you move into the house?
Gavin: A couple of weeks ago, and it’s an apartment actually. I was told by the landlord that it
would be a good idea to get some insurance for the furniture and other personal possessions.
Diane: Fine. Well, let’s get some details. What kind of apartment is it? Gavin: It’s a two-bedroom apartment.
Diane: What floor is it on?
Gavin: Why do you need to know that?
Diane: Because it affects the cost of the insurance. An apartment on the ground floor isn’t as
protected as others and there’ s more chance of a break-in.
Gavin: Really? I didn’t know that. It’s on the third, no... second floor.
Diane: Second... and how much is the rent?
Gavin : It’s  ￡ 615 per month.
Diane: Good, and where is it located?
Gavin: In Biggins St. South Hill.
Diane: I see. And what things did you want to insure?
Gavin: Well, what do you recommend?
Diane: Well, the most important things are those, which you would normally find in a home, things
like the television, fridge and so on.
Gavin: I see. Well, I’ve got a fridge and a stereo system, which I’ve just bought from a friend.
Diane: And how much did you pay for the fridge?
Gavin: Err, $ 450.
Diane: 50 or 157
Gavin: 50, and the stereo system costs $1,150.
Diane: Have you got a television?
Gavin: Yes, but it’s very old and not worth much.
Diane: OK. Well, is there anything else you want to insure?
Gavin: Yes, I’ve got a couple of watches and my CDs and books.
Diane: How much do you think they’re worth?
Gavin: The watches are worth $ 1,000...
Diane: For both of them?
Gavin: No. Each one and, all together, the CDs and books cost me about $ 400.
Diane: OK, so the value of everything you want to insure is $ 4, 000.
Gavin: How much will the insurance cost?
Diane: Let me see, $ 4,000 divided by... plus 10%... right, so this kind of insurance, err, that’s
Private Contents insurance, it comes to $ 184.00 for a twelve-month period.
Gavin: $184.00. Well, that sounds pretty good. OK, I’ll take that policy.