View
216
Download
1
Category
Tags:
Preview:
Citation preview
Copyright ©2004 Pearson Education, Inc. All rights reserved. 10-1
Homeowner’s Insurance
• Homeowner’s insurance: provides insurance in the event of property damage, theft, or personal liability relating to your home
• Types of perils covered– Homeowner’s insurance structured in six
packages, each covering different perils in different amounts
Copyright ©2004 Pearson Education, Inc. All rights reserved. 10-3
Homeowner’s Insurance
– Personal liability coverage provides protection if someone is injured on your property
• Factors that affect homeowner’s insurance premiums– Value of insured home
– Deductible
– Location
– Degree of protection
– Discounts
Copyright ©2004 Pearson Education, Inc. All rights reserved. 10-4
Homeowner’s Insurance Policy Provisions• Property damage covers damage to the home
– Cash value policy: pays you for the value of the damaged property after considering depreciation
– Replacement cost policy: pays you for the actual cost of replacing the damaged property
• Other structures on property also covered
Copyright ©2004 Pearson Education, Inc. All rights reserved. 10-5
Homeowner’s Insurance Policy Provisions
• Personal property is normally covered– Includes furnishings and other personal
possessions
– Home inventory: contains detailed information about your personal property that can be used when filing a claim
Copyright ©2004 Pearson Education, Inc. All rights reserved. 10-6
Homeowner’s Insurance Policy Provisions
– Personal property replacement cost coverage is available
– Personal property floater: an extension of the homeowner’s insurance policy that allows you to itemize your valuables
Copyright ©2004 Pearson Education, Inc. All rights reserved. 10-7
Homeowner’s Insurance Policy Provisions
• Liability insurance included to cover any lawsuits resulting from an event occurring in your home or on your property
• Many other expenses can also be included
Copyright ©2004 Pearson Education, Inc. All rights reserved. 10-8
Homeowner’s Insurance Premiums
• Factors that affect homeowner’s insurance premiums– Value of insured home
– Deductible
– Location
– Degree of protection
– discounts
Copyright ©2004 Pearson Education, Inc. All rights reserved. 10-9
Homeowner’s Insurance Premiums
• Reducing your homeowner’s insurance premium– Increase your deductible
– Improve protection
– Use one insurer for all types of insurance
– Stay with the same insurance company
– Shop around
Copyright ©2004 Pearson Education, Inc. All rights reserved. 10-11
Filing a Claim
• Contact insurance company immediately if damage occurs
• Claims adjuster estimates damage
• Present your home inventory
• Get an independent estimate
• Appeal low estimates by insurance company
Copyright ©2004 Pearson Education, Inc. All rights reserved. 10-12
Renter’s Insurance
• Renter’s insurance: an insurance policy that protects your possessions within a house, condominium, or apartment that you are renting
• Renter’s insurance policy provisions– Specifies maximum coverage for personal
assets– Also covers liability from damages to a person
on your property
Copyright ©2004 Pearson Education, Inc. All rights reserved. 10-13
Umbrella Personal Liability Policy
• Umbrella personal liability policy: a supplement to auto and homeowner’s insurance that provides additional personal liability coverage– Especially important for wealthy people
– Must show proof of existing coverage
Recommended