1. © 2010 by Cengage Learning Chapter 24 _________ Property Insurance

2. © 2010 by Cengage Learning  I f you own real estate, you take the risk that your property may be damaged due to fire or other catastrophe. Property Insurance

3. © 2010 by Cengage Learning  Fire insurance is the foundation of property damage policies.

4. © 2010 by Cengage Learning  Insured = Homeowner  Insurer = Insurance Company  Insurance Premium = Payment

5. © 2010 by Cengage Learning Insured Risks Hail Tornado Earthquake Riot Windstorm Smoke damage Explosion Glass break Water pipe leaks Vandalism Freezing Building collapse Endorsements

6. © 2010 by Cengage Learning  Contains coverage deemed by insurance experts to be the most useful to persons who own the home in which they live.

7. © 2010 by Cengage Learning  Tenant’s policy – provides coverage for personal property of renter.  Condominium policy – covers personal property of owner.

8. © 2010 by Cengage Learning Today’s cost to replace the damaged portion Insurance carried 80% of today’s cost to replace whole structure RECOVERY x =

9. © 2010 by Cengage Learning  Medical Payments  Endorsements

10. © 2010 by Cengage Learning  Flood Insurance  Guaranteed Replacement Cost  Flood Insurance  Landlord Policies

11. © 2010 by Cengage Learning Key Terms All-risk policy Broad form (HO-2) Endorsement Homeowner policy Insurance premium Insured New for old Old for old Peril Public liability