Note Information in this presentation is derived from Insurance for Dummies by Jack Hungelmann. I highly recommend this book.

Odds of a house burning down: 1 in 1,200 Source: But there is more to home insurance than fire insurance

Coverage A: Damage to residence B: Damage to detached structures C: Damage, theft of personal property at home or anywhere D: Living costs (e.g., hotel, meals) E: Non-vehicle personal liability for injuries/property damage at home and anywhere F: Medical payments to guests injured on your property

 Bottom Line: Insure for 100 percent of the replacement cost of the property  Long story short, if you do not at least insure for 80%, you may not be fully insured in the event of partial damage (e.g., kitchen fire).  Keep in mind, if you pay, say $300,000 for a house, that cost includes the land.  If your house is appreciating each year, you may need to increase the insurance

Very Important Coverage! Covers liability for injuries and property damage, lawsuits, defending lawsuits, covering most non-vehicle personal liability worldwide

 You hit the catcher with a baseball bat playing baseball  You spill a drink on the neighbor’s living room carpet ruining the carpet

General Rule: Set the personal liability on homeowner’s at the same level you set liability on other policies (e.g., auto) Rationale: nobody knows where a law suit or injury may come from

 Earthquakes, tremors, landslides, sinking or shifting  Water that enters the house at or below ground level (e.g., sewer backup, flood)  War

1. What is the maximum annual out-of-pocket expenses? 2. Are there any limits on any expenses such as a specific surgery or room charges? 3. Can you see a specialist without a referral? 4. Is the coverage worldwide?

1. Liability Coverage (injury and property) 2. Medical Payments (for you) 3. Collision and Comprehensive (your vehicle) 4. Uninsured/Under-insured

Covers 1. Lawsuits: suability factor is important  pays for your defense  legal judgments  Lost wages  Pain and suffering 2. Medical Expenses

Example 1Example 2Example 3 Injury limit per person $50,000$100,000$250,000 Injury limit per accident $100,000$300,000$500,000 Property damage limit per accident $25,000$50,000$100,000

Who you hit matters!

TeacherPro Athlete Lost Wages$50,000$2,000,000 Pain and Suffering $150,000$1,000,000 Medical Expenses$100,000 Total Claim$300,000$3,100,000

... consider buying an Umbrella Policy

 Buy a safe vehicle- test crash results  Choose high collision and compr. deductibles  Keep a clean driving record  Maintain a high credit score  Insure your car and home with the same company  Don’t submit small claims on property damage  Study– G.P.A of 3.0 or greater