Bell Ringer

• Yesterday we learned about 3 different types of personal insurance. What were they?

Lesson 6-3 Protecting Property

Learning Goals:

Explain the need for and provisions of a homeowner’s and a renter’s insurance policy.

Explain the need and types of coverage for automobile insurance.

Describe ways you can shop for insurance, minimize premiums, and maximize coverage.

Homeowner’s Insurance

• Homeowner’s insurance protects the policyholder from risk of loss to a home and its contents.• Covers losses from fire and other hazards, criminal activity, and

personal liability

• Types of coverage• Fire and Other Hazards – Often required by mortgage

lenders• Criminal Activity• Personal Liability• Acts of Nature

Home Inventory

• The home inventory is a list of all items of value in your home.

• When items are stolen from your home, destroyed, or damaged, you must file a claim with the insurance company in order to be paid for the items.

• Inventory should list the number of items, when they were purchases, and the original cost.

• List serial numbers for items such as appliances and computers.

• Store the list in a safe place, such as a fireproof box or a safe deposit box.

Renter’s Insurance

• Renter’s insurance is a tenant’s policy that protects against the loss of personal property and for liability protection in a renter residence.• Protects the home’s contents and not the structure. The landlords

homeowner’s insurance covers the structure.

• Loss could occur from fire, smoke, theft, freezing, water damage, or other hazards.

• Renter’s insurance includes a personal liability.

• Renter’s insurance also includes your property in your car or at work.

Automobile Insurance

• Automobile insurance protects a car owner form losses as a result of accidents and other events.

• Cost depends on the model, style, and age of the care and driving record on the insured.

Types of Automobile Insurance

• Liability Coverage – protects against loss as a result of injury to another person or damage to that person’s property. • Nebraska law requires you have liability coverage

• Collision Coverage – protects against damage to your own vehicle if you hit another car or lose control and roll over. It pay for damage to your car when you are at fault.

• Comprehensive Coverage – Protecting against damage other than collision or roll over, such as fire, theft, hail, water, falling objects, and vandalism.

Type of Auto Insurance

• Personal Injury Protection (PIP) – pays for medical, hospital, and funeral costs of the insured, the insured’s family, and other passengers in the car at the time of the accident. Discounts my be available if you have airbags and other safety features.

• Uninsured/Underinsured Motorist – provides protection against damages caused by a motorist who is at fault and does not have insurance or the means to pay for your damages. This insurance also covers you as a pedestrian when hit by an uninsured motorist.

• Towing/Rental Car Coverage

No-Fault Insurance

• Some states have no-fault insurance laws.

• Under no-fault insurance laws, your auto insurance company will initially pay for your damages regardless of who was at fault for the accident.

• The 12 states that currently have or include a no-fault car insurance scenario are:• Florida,, Michigan, New Jersey, New York, Pennsylvania, Hawaii,

Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, Utah

Reduce Ricks While you Drive

• Only drive when your rested.

• Avoid distractions such as texting – DON’T TEXT AND DRIVE

• Keep your car properly serviced.

• Use defensive driving techniques.

Reducing Premium Costs

• Higher Deductibles

• Changing Your Driving Habits

• Combining or Decreasing Coverage https://www.youtube.com/watch?v=k9DfnqvYTw4

• Comparison Shopping https://www.youtube.com/watch?v=itDejkU20Ig

• Buying Insurance Online

• Timing of Premiums

• Piggybacking

• High Risk Pools

• Discounts

Maximizing Benefits

• Review Coverage – Review every year or two. May be over insured. Make sure you have everything covered. Needs change and need to make sure you are getting the best price for the coverage.• https://www.youtube.com/watch?v=k9DfnqvYTw4

• Umbrella Insurance – provides liability coverage above that of your homeowner’s and car insurance. It is designed to protect you from extraordinary losses.