9 - 1 copyright © 2008 by nelson, a division of thomson canada ltd chapter 9 – protecting your...

COPYRIGHT © 2008 by Nelson, a division of Thomson Canada Ltd

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Chapter 9 – Protecting Your Property


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Chapter 9 - Learning Goals

LG 1 - Discuss the importance and basic principles of property insurance, including types of exposure, indemnity, and coinsurance.

LG 2 - Identify the types of coverage provided by homeowner’s insurance.

LG 3 - Select the right homeowner’s insurance policy for your needs.

LG 4 - Analyze the coverage in a personal automobile policy, and choose the most cost-effective policy.

LG 5 - Describe the other types of property and liability insurance.

LG 6 - Choose a property and liability insurance agent and company, and settle claims.

Learning Goals


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Internet Links and On-Line Resources

• No sure where to find earthquake insurance? Go to Westernmutual.com for an instant internet quote.

• “Lowering Your Homeowner’s Insurance Premiums – Twelve Ways to Lower Your Homeowner’s Insurance Cost” – at Claiminformation.com.

• “Homeowner’s Insurance Savings Checklist” at Personalinsure.com.

• Know what to do if you have an auto accident – Insurance Bureau of Canada.

• Learn more about Facility Association.• “ Why Every Policyholder Needs Umbrella Insurance,”

Personalinsure.com.• “Common Questions About Umbrella Insurance,”

MundusInsurance.com.

Web Links


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Key Chapter Terms and Definitions Property insurance Liability insurance Peril Negligence Principle of indemnity Actual cash value Right of subrogation Coinsurance Comprehensive insurance

policy Named peril insurance poli

cy Broad form insurance polic

y Personal articles floater Replacement cost Personal automobile policy Bodily injury liability losse

s Property damage liability l

osses

Collision insurance Comprehensive automobil

e insurance Specified perils automobil

e insurance Uninsured motorist covera

ge No-fault automobile

insurance Facility association

insurance Personal liability umbrella

policy Insurance agent Insurance broker Claims adjuster

Terms


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DefinitionsProperty Insurance

Insurance coverage that protects real and personal property from catastrophic losses caused by a variety of perils, such as fire, theft, vandalism, and windstorms.

Terms


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DefinitionsLiability Insurance

Insurance that protects against the financial consequences that may arise from the insured’s responsibility for property loss or injuries to others.

Terms


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DefinitionsPeril

A cause of loss. The mechanism of

loss. Includes:

• Aircraft or vehicle impact

• Electrical current• Explosion• Falling object• Fire• Lightning• Riot• Smoke• Theft

Terms


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DefinitionsNegligence

The failure to act in a reasonable manner or take necessary steps to protect others from harm.

Terms


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DefinitionsPrinciple of indemnity

An insurance principle stating that an insured should not be compensated by the insurance company in an amount exceedin the insured’s economic loss.

Terms


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DefinitionsActual cash value

A value assigned to an insured property that is determined by subtracting the amount of physical depreciation from its replacement cost.

Terms


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DefinitionsRight of Subrogation

The right of an insurer, who has paid an insured’s claim, to request reimbursement from the person who caused the loss or that person’s insurer.

Terms


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DefinitionsCoinsurance

In property insurance, a provision that requires a policyholder to buy insurance in an amount equal to a specified percentage of the replacement value of his or her property; if not, the policyholder is required to pay for a proportional share of losses.

Terms


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DefinitionsComprehensive insurance policy

Property and liability insurance policy that covers all perils on property unless they are specifically excluded.

Terms


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DefinitionsNamed peril insurance policy

Property and liability insurance policy that names the perils covered individually on property.

Terms


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DefinitionsBroad form insurance policy

Property and liability insurance policy that provides comprehensive coverage on buildings and named perils coverage on contents.

Terms


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DefinitionsPersonal articles floater

An insurance endorsement or policy that provides either blanket or scheduled coverage of expensive personal property not adequately covered in a standard property insurance policy.

Terms


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DefinitionsReplacement cost

The amount necessary to repair, rebuild, or replace an asset at today’s prices.

Terms


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DefinitionsPersonal automobile policy

An automobile insurance policy designed to provide coverage for loss or damage arising from the ownership or use of a personally owned automobile.

Terms


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DefinitionsBodily injury liability losses

A provision in an automobile insurance policy that protects the insured against claims made for bodily injury to others; may specify coverage as a combination of per-individual and per-accident limits.

Terms


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DefinitionsProperty damage liability losses

A provision in an automobile insurance policy that protects the insured against claims made for damage to property; specified on a per-accident basis.

Terms


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DefinitionsCollision insurance

Automobile insurance that pays for collison damage to an insured automobile, regardless of who is at fault.

Terms


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DefinitionsComprehensive automobile insurance

Coverage that protects against loss to an insured automobile caused by any peril (with a few exceptions) other than collision.

Terms


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DefinitionsSpecified perils automobile insurance

Coverage that protects against loss to an insured automobile caused by a specified list of perils.

Terms


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DefinitionsUninsured motorist coverage

Automobile insurance designed to meet the needs of victims of accidents who are injured by uninsured, under-insured, or hit-and-run motorists.

Terms


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DefinitionsNo-fault automobile insurance

A concept of automobile insurance that favours reimbursement without regard to negligence.

Under pure no-fault, each insured party is compensated by his or her own company, regardless of which party caused the accident.

Terms


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DefinitionsFacility association insurance

An arrangement that provides automobile insurance to drivers who have been refused regular coverage under normal procedures.

Terms


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DefinitionsPersonal liability umbrella policy

An insurance policy that provides excess liability coverage for both homeowner’s and automobile insurance, and additional coverage not provided by either of those policies.

Terms


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DefinitionsInsurance agent

An insurance agent who represents only one insurance company and is more or less an employee of that company.

Terms


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DefinitionsInsurance broker

An insurance agent who may place coverage with any company with which he or she has an agency relationship, as long as the insured meets the company’s underwriting standards.

Terms


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DefinitionsClaims adjustor

An insurance specialist who works for the insurance company as an independent adjustor or for an adjustment bureau.

He or she investigates claims, looking out for the interests of the company.

Terms

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THE END!

9 - 1 copyright © 2008 by nelson, a division of thomson canada ltd chapter 9 – protecting your...

Documents

earthquake insurance

liability insurance

homeowners insurance

homeowners insurance

property chapter

property slide

personal property

types of property