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3. Read to Learn
List some examples of insurance for real and personal property.
Describe protection provided by homeowners insurance policies.

4. The Main Idea
Property owners can buy insurance to protect their real property, such as a house or business, and their personal property, such as furniture, jewelry, and equipment. Insurance companies write policies for homeowners, renters, and business owners to protect against many kinds of risk.

5. Key Concepts
Insuring Your Property
Homeowners Policies

6. Key Terms
property attached to land, such as a house, business, garage, or other building
real property
possessions that can be moved, such as furniture, jewelry, and electronic equipment
personal property

7. Key Terms
renters insurance
protection against loss or damage to a renter’s personal possessions
standard fire policy
insurance against damage due to fire or lightning

8. Key Terms
extended coverage
other types of protection added to a standard fire policy

9. Key Terms
insurance coverage against damage to property and personal property, additional living expenses if a home is destroyed, and liability protection
homeowners policy

10. Key Terms
an addition to a policy that covers specific property or damages
rider
the full cost of repairing or replacing the property, regardless of the deprecation value
replacement value

11. Insuring Your Property
Each year property is lost or destroyed by natural disasters, accidents, theft, and vandalism.
Property insurance provides protection from financial loss on property.

12. Types of Property Insurance
Two kinds of property you can insure are real property and personal property.
real property
property attached to land, such as a house, business, garage, or other building
personal property
possessions that can be moved, such as furniture, jewelry, and electronic equipment

13. Types of Property Insurance
The cost of renters insurance depends on the amount of coverage, the type of building, and the location of the apartment.
renters insurance protection against loss or damage to a renter’s personal possessions

14. College Bound
If your plans include college after high school and you will live off campus, you should consider renters insurance.

15. Types of Property Insurance
Because fire poses the greatest threat to property, many property owners buy a standard fire policy.
standard fire policy insurance against damage due to fire or lightning

16. Types of Property Insurance
Some property owners add extended coverage to their standard fire policy.
extended coverage other types of protection added to a standard fire policy

17. Types of Property Insurance
Liability insurance protects owners from the costs of injuries to others on their property.
Liability pays for two things:
Actual damages
Legal expenses

18. Types of Property Insurance
Additional living expenses insurance provides coverage for the cost of renting another place to live if a home is damaged.

19. Types of Property Insurance
Business owners can get insurance to cover the costs of property.
Businesses also buy liability coverage to protect themselves from claims by anyone injured on the premises.

20. Homeowners Policies
Many insurance companies offer a combination policy with essential protection called a homeowners policy.
homeowners policy
insurance coverage against damage to property and personal property, additional living expenses if a home is destroyed, and liability protection

21. What Do Homeowners Policies Cover?
Graphic Organizer
What Do Homeowners Policies Cover?
Structural protection
Garages or sheds
Personal belongings
Liability protection
Living expenses

22. What Do Homeowners Policies Not Cover?
Graphic Organizer
What Do Homeowners Policies Not Cover?
Floods
Landslides
Acts of war
Nuclear hazards

23. A rider can be added to a homeowners policy.
Homeowners Policies
A rider can be added to a homeowners policy.
rider
an addition to a policy that covers specific property or damages
Insurance for natural disasters usually costs more.

24. Figure 34.2
Filing a Claim

25. Amount of Insurance
Insurance companies usually recommend that homeowners insure their home for 80 percent of its market value.

26. Amount of Insurance
You can insure property for either its actual cash value or its replacement value.
replacement value
the full cost of repairing or replacing the property, regardless of the depreciation value

27. Premiums may be affected by the following factors:
Amount of Insurance
Premiums may be affected by the following factors:
The number of claims insurers pay each year
The amount of coverage
The type of policy
The amount of the deductible
The location of the property
The type of home
The building materials

28. In addition to vehicles, what types of proptery can be insured?
real and personal property

29. What types of coverage are included in homeowners policies?
protection against loss from fire, windstorm, explosion, riot or civil commotion, vandalism, and theft

30. What factors affect the cost of property insurance?
the number of claims, amount of coverage, type of policy, deductible, location; type of home and materials in it; and preventive measures being taken.

31. End of