Learning Objective # 2 Discuss the importance of property and liability insurance. LO#2

Potential Property Losses  The main risks related to homes (and automobile) are;  Property damage or loss  Your responsibility for injuries to others or damage to property of others  Homes, automobiles and other personal belonging represent a substantial financial commitment  Risk of physical damage caused by perils such as fire, wind, water or smoke  Risk of loss of use of your property LO#2

Liability Protection  Liability is legal responsibility for the financial cost of another person’s losses or injury  Negligence is the failure to do what a reasonable and prudent person would do in a given situation  Vicarious liability is when you are held responsible for the actions of another person.  Strict liability is present when a person is held responsible for intentional or unintentional actions LO#2