perf objective 6.03-b insurance & housing options students will understand the need for property...
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PERF Objective 6.03-BInsurance & Housing Options
Students will understand the need for PROPERTY INSURANCE to
protect their assets.
Property/Casualty Insurance
• Types of policies :– Fire policies– Renter’s policies– Homeowner’s policies
Property and Casualty Insurance
• Covers – Real Property: Houses, apartments, condos,
office buildings and other structures• Land and anything permanently attached
– Personal property: Jewelry, furniture, clothing, equipment, artwork and other valuables
• Moveable property
Fire Policy
• A very basic policy covering loss resulting directly or proximately from an unfriendly fire.– Unfriendly or hostile fire is uncontrollable or
has escaped from the place where it should be.
– A friendly fire is a bonfire, furnace fire, fire in a fireplace unless it gets out of control.
Fire Policy• Owner of property (landlord) who rents to
others (tenants) protects investment in structure with a fire policy
• Owner insures real property, but not tenant’s property
• Landlord Examples: Tenant examples:– Apartment -Furniture– Condo -Clothes– Office building -Office equipment
Renter’s Insurance
• Person who rents real estate from another but has personal contents on premise carries renter’s insurance to insure:– personal contents-
furniture, TV, clothes, etc– against liability risk
• Note: • You can only
insure your own property, not another’s property.
• Renter insures his personal items.
• Landlord insures structure.
Renter’s Insurance
• Protection includes:– Personal contents of tenant in an apartment, condo,
mobile home or house– Personal liability if others sue tenant for injuries
• Examples:• Lightning strikes and damages TV owned by
tenant • Neighbor breaks leg when he steps on child’s
skate left on steps and sues tenant for negligence
Homeowner’s Policy
• Provides coverage for:– Home - Primary structure– Personal property - Contents– Related structures – Outbuildings, if any– Loss of Use - Living expenses if insured can
not live there due to covered damage– Premise personal liability – for injuries to
others who were on your property
Homeowner’s (HO) Policy
• Riders may extend policy for additional coverage for items such as:
• Boats• Jewelry• Furs• Artworks• Antiques• And other special collectibles owned by a
homeowner
Cost Factors of Property Insurance
• Limit of coverage for property– $50,000 $250,000 $500,000
• Location of property – fire district, city, county, state
• Structural material - brick, block, frame
• Previous claims filed
• Company chosen
Perils Insured Against
• Fire
• Theft
• Vandalism
• Hail
• Windstorm
FLOOD & EARTHQUAKE
• NOT COVERED UNDER HO POLICY– Must buy separate flood insurance coverage– Must buy separate earthquake coverage
Lloyd’s of London
• An insurance company that covers unique property and liability risks that are difficult to insure.
• Examples: – An opera singer’s vocal chords– Life insurance on insured with extremely risky
occupations– Comprehensive and collision auto insurance on
drivers with numerous tickets and accidents.– Jennifer Lopez’s posterior
Filing a Claim
• Call insurance company
• Provide Proof of loss– Take pictures of damage– Provide police report if applicable– Inventory list of property owned and/or
damaged– Get estimates of repairs from professionals