PERF Objective 6.03-B Insurance & 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