1. Homeowner’s/Renter’s Insurance Homeowner’s Insurance combines property and liability insurance into one policy to protect a home from damage costs due to hazards.

2. Home owners Insurance ◦ Hazards- a condition that creates or increases the likelihood of loss ◦ Nature- fire, water, wind ◦ Crime- theft, arson, vandalism ◦ Liability- lack of supervision, negligence

3. Will cover cost of replacing The structure of your home Your personal possessions The cost of additional living expenses in the case that your home is damaged and you must live somewhere else while repairs are performed Your liability to others for accidents that may happen at your home

4. Coverage Most sensible policy ◦ Protects against all perils except those explicitly listed  Earthquake  Flood  War and nuclear accident ◦ Exclusions- those things that are specifically listed as not covered by a policy. Many others available at varying costs

5. Coverage General rule: ◦ 100% total value  rebuilding cost  Square footage x construction cost per square foot  Ask a contractor, appraiser or agent  Personal possessions Two types of compensation ◦ “cash value”- pays you cash for what destroyed property was worth at time of destruction, including depreciation ◦ “replacement cost”- what it would take to rebuild with similar quality

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7. How does your insurance company know the value of your possessions ? Household inventory- page 627  List of possessions  Proof of ownership-receipts, pictures Items not covered?  Page 628

8. Renter’s Insurance Renter’s Insurance protects the insured from loss of personal property due to fire, smoke, moisture, theft ect ◦ Does not cover the structure itself Liability- can be added

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10. Assignment Create an inventory of your room and one other room in your house. Assign a $ value for each item. Take list home and re-evaluate inventory Type up your list ◦ Add at least 10 pictures of items, receipts (if you have them) and the value of items Due