Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved1 Introduction People purchase insurance to protect the things they value Homeowner’s insurance is an affordable way to protect one of your largest investments You will actually purchase three separate types of insurance when you purchase homeowner’s insurance Most people place great value on their home Homeowner’s insurance protects your home from natural perils, hazards, accidents and thieves.

Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved2 Objectives You should be able to do the following after completing this lesson. Explain what homeowner’s insurance (HOI) protects Review the types of insurance included in a standard HOI policy Describe how casualty insurance protects you and your home Discuss how much casualty insurance you should purchase Explain what personal property and liability insurance protects Identify why a mortgage lender requires homeowners to have HOI Describe how you would purchase HOI Summarize how much HOI costs Explain who needs renter’s insurance Define the key terms introduced in this lesson

Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved – Homeowner’s Insurance Why people purchase homeowner’s insurance Why it is essential for homeowners to understand homeowner’s insurance In this section, you will learn Homeowner’s insurance is composed of three components Why mortgage lenders require it for all home loans What the three components are and what they protect Components of Homeowner’s Insurance Example You will run the following Interactive Example

Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved – Casualty Insurance What casualty insurance is In this section, you will learn Which hazards are not covered by casualty insurance What casualty insurance protects What factors affect the cost of casualty insurance What determines how much coverage is needed Casualty Insurance Coverage Example You will run the following Interactive Example

Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved – Personal Property Insurance What personal property insurance protects How much personal property insurance is needed Why a complete home inventory is essential What some quick ways of performing a home inventory are In this section, you will learn What items personal property insurance covers Why some items only have limited coverage How cash value and replacement cost coverage works

Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved – Liability Insurance What home liability insurance is What liability insurance protects and how it does this Why the cost may go up if you have pets In this section, you will learn How much liability insurance is needed Why some people purchase umbrella or excess liability policies

Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved – The Importance of Homeowner’s Insurance Why mortgage lenders require you to purchase homeowner’s insurance when they lend you money Why homeowner’s insurance is important In this section, you will learn What the collateral for a home mortgage is Why many people include the cost of their home insurance in their monthly house payment What the largest investment many people make is

Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved – Obtaining Homeowner’s Insurance How you would purchase homeowner’s insurance Where and how you can purchase homeowner’s insurance What an exclusive insurance agent is In this section, you will learn What an independent insurance agent is Why you should shop around before purchasing homeowner’s insurance

Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved – Cost of Homeowner’s Insurance How much it costs to purchase homeowner’s insurance How often the premium for the insurance is due Why the cost goes up when the probability the insurance will be needed increases In this section, you will learn What factors affect the cost of the insurance

Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved – Lowering Your Cost Different ways you can lower the cost of homeowner’s insurance Why it might be a good idea to insure your car and home with the same company What the deductible is and how it works In this section, you will learn Which home features can reduce the cost of insurance Why updating an older home may help reduce your cost

Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved – Renter’s Insurance How many renters don’t have renter’s insurance In this section, you will learn What renter’s insurance is and what it protects How much coverage is needed How many people rent rather than buy a home Why a current inventory of your possessions is important How cash value and replacement cost policies compare Average Premiums Example You will run the following Interactive Example

Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved – Things to Remember Why it is important to read your homeowner’s insurance policy Why you should ask questions if you don’t know or understand any part of your policy In this section, you will learn Why it is essential to understand the terminology Why you should always shop around before buying Why you should know what is covered by your policy Why you should know what is NOT covered by your policy

Lesson 12.5 Home Insurance July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved13 Discussion Questions How do you compare homeowner’s insurance from different companies when each seems to be different? Will you ever reach a time when you won’t need insurance on your home?