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Published byRuth Lambert Modified over 8 years ago
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Note Information in this presentation is derived from Insurance for Dummies by Jack Hungelmann. I highly recommend this book.
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Odds of a house burning down: 1 in 1,200 Source: www.ricedelman.comwww.ricedelman.com But there is more to home insurance than fire insurance
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Coverage A: Damage to residence B: Damage to detached structures C: Damage, theft of personal property at home or anywhere D: Living costs (e.g., hotel, meals) E: Non-vehicle personal liability for injuries/property damage at home and anywhere F: Medical payments to guests injured on your property
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Bottom Line: Insure for 100 percent of the replacement cost of the property Long story short, if you do not at least insure for 80%, you may not be fully insured in the event of partial damage (e.g., kitchen fire). Keep in mind, if you pay, say $300,000 for a house, that cost includes the land. If your house is appreciating each year, you may need to increase the insurance
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Very Important Coverage! Covers liability for injuries and property damage, lawsuits, defending lawsuits, covering most non-vehicle personal liability worldwide
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You hit the catcher with a baseball bat playing baseball You spill a drink on the neighbor’s living room carpet ruining the carpet
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General Rule: Set the personal liability on homeowner’s at the same level you set liability on other policies (e.g., auto) Rationale: nobody knows where a law suit or injury may come from
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Earthquakes, tremors, landslides, sinking or shifting Water that enters the house at or below ground level (e.g., sewer backup, flood) War
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1. What is the maximum annual out-of-pocket expenses? 2. Are there any limits on any expenses such as a specific surgery or room charges? 3. Can you see a specialist without a referral? 4. Is the coverage worldwide?
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1. Liability Coverage (injury and property) 2. Medical Payments (for you) 3. Collision and Comprehensive (your vehicle) 4. Uninsured/Under-insured
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Covers 1. Lawsuits: suability factor is important pays for your defense legal judgments Lost wages Pain and suffering 2. Medical Expenses
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Example 1Example 2Example 3 Injury limit per person $50,000$100,000$250,000 Injury limit per accident $100,000$300,000$500,000 Property damage limit per accident $25,000$50,000$100,000
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Who you hit matters!
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TeacherPro Athlete Lost Wages$50,000$2,000,000 Pain and Suffering $150,000$1,000,000 Medical Expenses$100,000 Total Claim$300,000$3,100,000
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... consider buying an Umbrella Policy
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Buy a safe vehicle- test crash results www.iihs.org www.iihs.org Choose high collision and compr. deductibles Keep a clean driving record Maintain a high credit score Insure your car and home with the same company Don’t submit small claims on property damage Study– G.P.A of 3.0 or greater
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