Learning Objective # 3 Explain the insurance coverage and policy types available to homeowners and renters. LO#3

Homeowners Insurance Coverage Homeowners insurance is coverage for a place of residence and its associated financial risks. Includes physical damage to property and the loss of use of the property Buildings and other structures Additional living expenses Personal property / articles Personal property endorsement Household inventory LO#3

Homeowners Insurance Coverage Replacement Value of your home limit of insurance purchased should reflect the cost to rebuild your home not its current market value appraisal, inspection by company Depreciated Value A reduction in the value of an object based upon its age and the percent it has decreased each year LO#3

Homeowners Insurance Coverage Homeowners Liability coverage protects you and your family from financial losses resulting from legal actions against you due to damage to others and their property includes the cost of legal defense Voluntary Medical Payments Voluntary Property Damage LO#3

Homeowners Insurance Coverage Umbrella Policy Also called a personal catastrophe policy. Supplements basic personal liability coverage. $1,000,000 or more in liability coverage. LO#3

Tenants Insurance Personal property loss or damage. Personal liability. Additional living expenses Landlords insurance usually wont cover personal belongings. Tenants Legal Liability covers loss or damage to property in your care or control caused by fire, smoke, explosion or water damage. LO#3

Home Insurance Policy Forms Named Perils only those perils specifically listed in the policy are covered if a loss occurs All Risk any event that causes loss or damage is covered unless it is specifically excluded Different coverage types are combined in package form – standard, broad or comprehensive forms Extensions of coverage are available for other losses LO#3

Home Insurance Policy Forms Dwelling Building Personal Property StandardNamed Perils Coverage BroadAll Risks Coverage Named Perils Coverage ComprehensiveAll Risks Coverage LO#3