1. Real Property Insurance Chapter 24

2.  Insured: Makes pmts  Premium: The payment  Insurer: The company responsible  Endorcement: Coverage for separate perils Rider or attachment modifies basic policy  Public liability (to others)  Lenders require insurance – Often escrow  Insured can cancel anytime/Insurer must give notice Premium is pro-rated & refunds made Some Terms & Stipulations

3.  Fire, wind, water, vandalism, etc. Fire=Single most important cause of damage  Loss of use  Expenses resulting from loss of use  Liability from negligence bodily injury damage medical  Inability to make mortgage payments Risks of Owning Property

4.  Direct losses: Replace or repair  Indirect loss Living expenses, loss of business income Liability Insurance  $ Homeowner’s Policy: Fire, liability & medical HO-3L 20K + Other losses based on % Replacement Cost Endorsement: Personal Articles Floater: Schedule-Specific items  Home Buyer’s Insurance: Builders warrant for 1 yr + & HOW after that Property Losses

5. Renting (HO-4) /Condos (HO-6)  Dwelling=Landlord Rental policy does not cover building damage  Personal property Furniture, clothing, collectibles, etc  Liability Depends on deductibles Not automatic –  Condos: Association buys insurance for common areas Owners buy insurance for personal property Property Losses

6.  How far you are from hydrant & station Urban < rural  Existence of fire places of various types  Type of construction Wood>Brick  Discounts: Alarms, sprinklers, deductibles  Coinsurance  Medical payments  Endosements: Inflation, worker’s comp Baby citers, cleaners Discounts & Additions

7.  Earthquakes: Not covered - Need endorsement & Expensive!  Umbrella: Disastrous liability Up to $1,000,000 covers auto & HO for $100+  Flood: No private insurance Nat’l Flood Insurance Act of 68 Govt flood insurance  Mandatory for federally- regulated banks & thrifts Earthquake, umbrella & flood

8.  Mortgage life: Decreasing term Never required Can be covered w/ other policy  Business Owner Policy Building’s: Replacement Personal property: Replacement Additional coverage Liability: Board of Directors Mortgage life & Bus Insurance