1. Chapter 24 Property Insurance __________________________

2. Insurance Terms Insured = Homeowner Insurer = Insurance Company Insurance Premium = Payment NOTE: Insurance is a contract

3. Homeowner Policy Fire insurance is the foundation of property damage policies. Main purpose typical homeowner policy (property damage) Contains coverage deemed by insurance experts to be the most useful to persons who own the home in which they live. Two types: all risk v. named peril insurance

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

5. Homeowner’s cont’d HO numbers (See text) Actual cash value v. Replacement Value NFIP Coverage beyond property damage: Liability Living Medical

6. Today’s cost to replace the damaged portion Insurance carried 80% RECOVERY x = Application of the Co-insurance Requirement

7. Other Insurance Tenant’s policy – provides coverage for personal property of renter. Condominium policy – covers personal property of owner.