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.

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  MNYAotg MNYAotg

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

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

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

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

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

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