1. Risk Management: Insurance

2. Insurance is for chickens
Think the sky might fall
Protection against catastrophic losses
Losses occur due to perils and threats:
Theft
Fire
Liability
Physical injury
Wind, hail, flood, earthquakes

3. Insurance on Property Homeowners Renters Boarders Structure
Outbuildings
Personal property
Liability
Renters
Boarders

4. Financial Pyramid Asset Preservation Asset Accumulation
Asset Protection

5. Protection of Assets Who gets protected? Automobile Insurance
Collision – your damage
Liability – covers you if your fault
Comprehensive – damage not related to an accident (theft, vandalism)
Personal injury – medical costs
Uninsured driver – you if other is not insured
Homeowners insurance
You and lender
Renters insurance
Your personal property

6. Splitting Cost of Risk Price is determined by split
How much you can cover
How much you need someone else to cover
Deductible is consumers part of the risk
Premium is based upon split

7. Know What you Have Read the policy
Know loss limits on items ex. Guns, jewelry, electronics
Know reputation and rating of company, AM Best, and Moodys
Compare and update when needed
What kinds of things could happen
to cause changes in coverage?

8. Finding a good product Rates and needs can change over time
Get quotes from several companies
Ask for referrals
The Oklahoma Insurance Department provides information about shopping, agents, costs, and explanations, and how to file a complaint

9. Possible ways to save on Home and Auto
Higher deductible
Take security measures – alarm systems can offset the cost of monitoring
Anti-theft devices
Good grades
No claims
High credit score
Multiple policy discounts

10. Other considerations
If property owner fails to keep up insurance – lender will place insurance on property with higher premium
Important to know difference between replacement value and actual cash value
Replacement costs can increase, thus cost of policy increases
Conduct an annual check up
Keep an inventory

11. Other considerations cont.
Areas change over time with development
Check your address at
Earthquakes are very common now
Policies are fairly inexpensive with high deductibles
Automobiles lose value over time
The insurance company represents you! You must contact them when an accident occurs.

12. Optional Insurance Business use of car
Rider or floater on equipment you take with you – laptop, electronics, cameras
Home warranty

13. Questions and Comments

14. Insurance on Life
Life insurance is different because it is all or nothing. You have to get it as close to right as possible.
Decide who needs it
Decide how much is needed
Decide on type of policy
Understand the basics
Decide how to purchase

15. Who needs it?
Life insurance is to cover expenses that would be left if a person who lends support died
Spouses – need to consider their contribution to the household and the earning potential of the partner
Parents – determine amount needed for children and the amount of time they need it
Think about what money is needed if you are gone, debts, cost to replace

16. What kind? Insurance protects against risks
With loss of life – risks could be limited by time or circumstance
Term = time limited (longer the term, greater cost) – no cash value
Child support
Mortgage
Loans
Whole life or universal – cash value, costs more
Support of surviving spouse if unemployed

17. How Much? Determine immediate and future needs
Determine immediate resources
Determine which gaps would exist
Use online calculator: or

18. General Insurance Tips
Get what you need but only as much as you need
Part of the benefit is peace of mind
Review policies regularly
Compare costs between companies
Keep inventory
Make changes when needed

19. Help is Here
The Oklahoma Insurance Department can help consumer who are having issues with insurance companies.
The OID has valuable information on you rights to insurance coverage and the basic information about insurance
Be sure and bookmark their website at

20. Questions and Comments