To indemnify against loss

Property Insurance  Covers damages to dwelling (house and attached fixtures) and personal belongings inside due to fire, storm, and theft  Also provides liability (lawsuits) and medical (bodily injury) insurance if someone gets hurt on your property ex: dog bite or customer slips and falls  Usually must take out additional policy for damage by flood, sewer back up, earthquake, etc.

Costs  Premium: Monthly costs for insurance  Can be escrowed and put into your monthly mortgage payment  Deductible: The amount you have to pay out- of-pocket for expenses before the insurance company will cover the remaining costs.insurance company  Higher deductible = lower premium

Replacement vs Cash Value  Replacement Costs = cost to buy new  Cash value = current value of belongings  High premium for replacement costs coverage but more out of pocket expenses if purchase cash value

Tips  Assess value of property before purchasing coverage  Keep receipts  Take photos  Get high valued items appraised professionally  Store records in another place or fire-proof safe  Don’t rely on landlord’s insurance

Renters Insurance  Covers your belongings inside of property ex: clothes, television, computer, furniture, equipment  Landlord’s insurance covers only building – not your possessions  Relatively inexpensive – can get policy from insurance agency  Some leases require it for you to rent

Auto: No-Fault Insurance -MI Law  Each driver is responsible for their own (comprehensive and collision) insurance for damage to cars regardless of who is at fault  Enacted to avoid court trials to identify who was at fault

Auto Insurance  By law must have auto liability and property insurance (PLPD) in Michigan which pays for medical or property damage if you are at fault in car accident  If pulled over without no-fault insurance can be fined up to $500, put in jail for up to a year, and/or get license suspended