Chapter 24 Property Insurance __________________________
Insurance Terms Insured = Homeowner Insurer = Insurance Company Insurance Premium = Payment NOTE: Insurance is a contract
Homeowner Policy Fire insurance is the foundation of property damage policies. Main purpose typical homeowner policy (property damage) Contains coverage deemed by insurance experts to be the most useful to persons who own the home in which they live. Two types: all risk v. named peril insurance
Insured Risks Endorsements Hail Tornado Earthquake Riot Windstorm Smoke damage Explosion Glass break Water pipe leaks Vandalism Freezing Building collapse
Homeowner’s cont’d HO numbers (See text) Actual cash value v. Replacement Value NFIP Coverage beyond property damage: Liability Living Medical
Today’s cost to replace the damaged portion Insurance carried 80% RECOVERY x = Application of the Co-insurance Requirement
Other Insurance Tenant’s policy – provides coverage for personal property of renter. Condominium policy – covers personal property of owner.