1. Homeowner’s/Renter’s Insurance
Homeowner’s Insurance combines property and liability insurance into one policy to protect a home from damage costs due to hazards.

2. Home owners Insurance
Hazards- a condition that creates or increases the likelihood of loss
Nature- fire, water, wind
Crime- theft, arson, vandalism
Liability- lack of supervision, negligence

3. Will cover cost of replacing
The structure of your home
Your personal possessions
The cost of additional living expenses in the case that your home is damaged and you must live somewhere else while repairs are performed
Your liability to others for accidents that may happen at your home

4. Coverage Most sensible policy Many others available at varying costs
Protects against all perils except those explicitly listed
Earthquake
Flood
War and nuclear accident
Exclusions- those things that are specifically listed as not covered by a policy.
Many others available at varying costs

5. Coverage General rule: Two types of compensation 100% total value
rebuilding cost
Square footage x construction cost per square foot
Ask a contractor, appraiser or agent
Personal possessions
Two types of compensation
“Cash Value”- pays you cash for what destroyed property was worth at time of destruction, including depreciation
“Replacement Cost”- what it would take to rebuild with similar quality

6. Renter’s Insurance
Renter’s Insurance protects the insured from loss of personal property due to fire, smoke, moisture, theft ect
Does not cover the structure itself
Liability- can be added

7. Assignment- Room Inventory
Create an inventory of your room and one other room in your house.
Assign a $ value for each item.
Take list home and re-evaluate inventory