1. © OnCourse Learning Chapter 24 : Property Insurance

2.  If you own real estate, you take the risk that your property may be damaged due to fire or other catastrophe. Property Insurance © OnCourse Learning

3.  Fire insurance is the foundation of property damage policies. INSURANCE © OnCourse Learning

4.  Insured = Homeowner  Insurer = Insurance Company  Insurance Premium = Payment INSURANCE TERMS © OnCourse Learning

5. Insured Risks Hail Tornado Earthquake Riot Windstorm Smoke damage Explosion Glass break Water pipe leaks Vandalism Freezing Building collapse Endorsements © OnCourse Learning

6.  Contains coverage deemed by insurance experts to be the most useful to persons who own the home in which they live. HOMEOWNER POLICY © OnCourse Learning

7. HOMEOWNER POLICY COVERAGE: PERILS COVERED BY INSURANCE

8. © OnCourse Learning HOMEOWNER’S COVERAGE

9.  Tenant’s policy – provides coverage for personal property of renter.  Condominium policy – covers personal property of owner. OTHER INSURANCE © OnCourse Learning

10. Today’s cost to replace the damaged portion Insurance carried 80% of today’s cost to replace whole structure RECOVERY x = APPLICATION OF THE CO-INSURANCE REQUIREMENT © OnCourse Learning

11.  Medical Payments  Endorsements LIABILITY COVERAGE © OnCourse Learning

12.  Flood Insurance  Guaranteed Replacement Cost  Flood Insurance  Landlord Policies LENDER REQUIREMENTS © OnCourse Learning

13.  old for old  Policy pays only the depreciated cost.  new for old  Policy pays replacement cost. © OnCourse Learning COVERAGE

14. © OnCourse Learning NEW FOR OLD CALCULATED

15.  A borrower carry fire and extended coverage on the mortgaged structures.  The reason is to protect the value of the security for the loan.  The lender will be named on the policy along with the property owner, and any checks from the insurance company for damages will be made out to the borrower and the lender jointly. © OnCourse Learning LENDER REQUIREMENTS

16.  Flood Insurance  Landlord Policies  Policy Cancellation  Policy Takeovers  Home Buyer’s Insurance © OnCourse Learning ADDITIONAL COVERAGE

17. Key Terms All-risk policy Broad form (HO-2) Endorsement Homeowner policy Insurance premium Insured New for old Old for old Peril Public liability © OnCourse Learning