1. PART 3: PROTECTING YOURSELF WITH INSURANCE Chapter 10 Property and Liability Insurance

2. 10-2 The Bottom Line How much homeowner’s insurance do you need? – Cover the replacement of your home if complete loss – Protection against inflation eroding coverage – Special disaster coverage in flood or earthquake areas – Home office coverage – Adequate personal property coverage – Possessions needing special coverage (coins, jewelry) – Additional liability coverage if assets are greater than liability limits

3. 10-3 Keeping Your Costs Down – Discounts and Savings 3 factors determine the cost of your homeowner’s policy: – Location of your home – Type of structure – Level of coverage and policy type Keep costs down by selecting a financially sound insurer with low comparative rates.

4. 10-4 Keeping Your Costs Down – Discounts and Savings High deductible discounts – pay less for larger deductibles. Security system/smoke detector discounts – save 2-5%. Multiple policy discounts – discount for more than one policy with insurer. Pay your insurance premiums annually.

5. 10-5 Keeping Your Costs Down – Discounts and Savings Other discounts – fire-resistant homes, age over 55, long-time policyholder. Consider a direct writer – no agents, so no salaries or commissions. Shop around – premiums vary by 25%. Double-check your policy – don’t want errors once you file a claim.

6. 10-6 What To Do in the Case of a Loss Checklist 10.2 Report your loss immediately. Make temporary repairs to protect your property. Make a detailed list of everything lost or damaged. Maintain records of the insurance settlement process. Confirm the adjuster’s estimate.

7. 10-7 Filing a Claim Your “to-do” list if involved in a car accident: – Get help for the injured. – Move car to a safe place. – Get identification of witnesses. – Cooperate with police. – Take a test for alcohol if you believe the other driver is under the influence.

8. 10-8 Filing a Claim – Write down recollection. – Don’t sign anything or admit guilt. – Get a copy of the police report and make sure it is accurate. – Call your insurance agent as soon as possible. – Cooperate with your insurer. – Record all expenditures associated with the accident. – If in a serious accident, then meet with a lawyer to know your rights.