insurance personal financial management. insurance and risk management introduction activity: with a...
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InsuranceInsurancePersonal Financial Management
Insurance and Risk Insurance and Risk ManagementManagement
Introduction Activity: With a partner.
Read p. 501 Explore Insurance Options.
1. Create a list of property he owns and determine an approximate replacement value
2. Choose three companies that offer renters insurance and compare what each company covers and the costs of coverage
3. Use a spreadsheet to compare your findings.
4. What company did you choose? ..why??!?!
AssignmentAssignment
Read p. 503-510
Answer questions 1-4 on p. 511
Home and Property Home and Property InsuranceInsurance
Homeowners Homeowners InsuranceInsurance
Coverage that provides protection for your residence and its associated financial risks, such as damage to personal property and injuries to others.
Building and Other Building and Other StructuresStructures
Covered under a homeowners' policy
detached structures on your property, such as a garage or tool shed
Household InventoriesHousehold InventoriesIf something happens to your personal property, you must provide how much it was worth.
List or other documentation of personal belongings, with purchase dates and cost information.
Form obtained from insurance agent
Additional Property Additional Property InsuranceInsurance
Valuable items may need added protection
Examples: jewelry, computers, musical instruments
Personal Property Floater - additional property insurance that covers the damage or loss of a specific item of high value.
Specific description and value proof
Personal Liability and Personal Liability and Related CoveragesRelated Coverages
Amounts of Coverage
Specialized Coverages
Amounts of CoverageAmounts of CoverageBasic homeowners policies cover $100,000
Umbrella policy - supplements basic personal liability coverage
Extended liability policies are useful for the wealthy and business - sold in the amounts of $1 million or more
Medical Payments Coverage - pays the costs of minor accidental injuries to visitors on your property.
Specialized CoverageSpecialized CoverageFloods or earthquakes – not part of homeowners policy
May be mandatory where you purchase your home
National Flood Insurance Program
Actual Cash ValueActual Cash Value
The payment you receive is based on the replacement cost of an item minus depreciation.
Depreciation - loss of value of an item as it gets older
Replacement ValueReplacement Value
You receive the full cost of repairing or replacing an item.
Depreciation is not considered when settling the claim.
More expensive coverage than actual cash value
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