CHAPTER 39

PROPERTY INSURANCE

HOME AND PROPERTY INSURANCE

• Damage to home and property--fire, flood, vandalism, wind, lightning, etc.

• Additional living expenses--pay for you to live in a hotel or furnished apartment

• Liability protection--protects you from claims arising from injuries to other people or other’s property caused by you, your family, or pets

PROPERTY INSURANCE POLICIES See 39-1

• Real property vs. Personal Prop.• Standard fire policy--insures against loss

caused by fire or lightning• Extended coverage--broadens coverage to

include other perils like wind, hail, smoke• Homeowners policies--convenient

package-type insurance that covers multiple perils

• Renters insurance--insures personal prop.

BUYING PROPERTY INSURNCE

• Find appropriate coverage at best cost!

• Review you coverage every few years because property values increase

• Accurately estimate value of personal property

• Factors in determining premiums include value, building materials, type of policy, number of perils covered, distance from fire station, deductible

BUSINESS INSURANCE

• Businesses need to insure their real and personal property

• Businesses can use insurance to protect against loss of income during times when they are closed due to tragedy

MAKING A CLAIM• Inventory--original cost of each article,

when the article was purchased, and how long it is expected to last

• Depreciation--decrease in value• Replacement insurance--replaces item, no

depreciation is deducted• Adjuster--rep. of the insurance company

that looks at damaged property, determines loss and pays according to terms of policy

• Take VIDEO or PICTURES of personal prop.