Chapter 3 Concepts of Home Ownership A variety of housing types are available under the general heading of home ownership: single family, small multifamily residences, and high-rise condos.

2 ©2013 Kaplan, Inc. 3 Concepts of Home Ownership Learning objectives –Identify the various types of housing choices available to homebuyers –Describe the issues involved in making a home ownership decision –Explain the tax benefits of home ownership, and –Distinguish the various types of homeowners’ insurance policy coverage

3 ©2013 Kaplan, Inc. 3 Concepts of Home Ownership Types of housing –Apartment complex –Condominium –Cooperative –Planned unit development (PUD) –Retirement community

4 ©2013 Kaplan, Inc. 3 Concepts of Home Ownership Types of housing –High-rise development –Converted-use property –Manufactured housing –Modular homes –Time-share

5 ©2013 Kaplan, Inc. 3 Concepts of Home Ownership Housing affordability –Mortgage terms –Ownership expenses and ability to pay –Investment considerations –Tax benefits

6 ©2013 Kaplan, Inc. 3 Concepts of Home Ownership Homeowners’ insurance –Coverage and claims –Basic versus broad-form policies –Liability coverage –Coinsurance clause Flood Insurance Program