1. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-1 Homeowner’s Insurance Homeowner’s insurance: provides insurance in the event of property damage, theft, or personal liability relating to your home Types of perils covered –Homeowner’s insurance structured in six packages, each covering different perils in different amounts

2. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-2 Homeowner’s Insurance

3. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-3 Homeowner’s Insurance –Personal liability coverage provides protection if someone is injured on your property Factors that affect homeowner’s insurance premiums –Value of insured home –Deductible –Location –Degree of protection –Discounts

4. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-4 Homeowner’s Insurance Policy Provisions Property damage covers damage to the home –Cash value policy: pays you for the value of the damaged property after considering depreciation –Replacement cost policy: pays you for the actual cost of replacing the damaged property Other structures on property also covered

5. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-5 Homeowner’s Insurance Policy Provisions Personal property is normally covered –Includes furnishings and other personal possessions –Home inventory: contains detailed information about your personal property that can be used when filing a claim

6. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-6 Homeowner’s Insurance Policy Provisions –Personal property replacement cost coverage is available –Personal property floater: an extension of the homeowner’s insurance policy that allows you to itemize your valuables

7. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-7 Homeowner’s Insurance Policy Provisions Liability insurance included to cover any lawsuits resulting from an event occurring in your home or on your property Many other expenses can also be included

8. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-8 Homeowner’s Insurance Premiums Factors that affect homeowner’s insurance premiums –Value of insured home –Deductible –Location –Degree of protection –discounts

9. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-9 Homeowner’s Insurance Premiums Reducing your homeowner’s insurance premium –Increase your deductible –Improve protection –Use one insurer for all types of insurance –Stay with the same insurance company –Shop around

10. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-10 Homeowner’s Insurance Premiums

11. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-11 Filing a Claim Contact insurance company immediately if damage occurs Claims adjuster estimates damage Present your home inventory Get an independent estimate Appeal low estimates by insurance company

12. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-12 Renter’s Insurance Renter’s insurance: an insurance policy that protects your possessions within a house, condominium, or apartment that you are renting Renter’s insurance policy provisions –Specifies maximum coverage for personal assets –Also covers liability from damages to a person on your property

13. Copyright ©2004 Pearson Education, Inc. All rights reserved.10-13 Umbrella Personal Liability Policy Umbrella personal liability policy: a supplement to auto and homeowner’s insurance that provides additional personal liability coverage –Especially important for wealthy people –Must show proof of existing coverage