3 Read to LearnList some examples of insurance for real and personal property.Describe protection provided by homeowners insurance policies.
4 The Main IdeaProperty owners can buy insurance to protect their real property, such as a house or business, and their personal property, such as furniture, jewelry, and equipment. Insurance companies write policies for homeowners, renters, and business owners to protect against many kinds of risk.
5 Key ConceptsInsuring Your PropertyHomeowners Policies
6 Key Termsproperty attached to land, such as a house, business, garage, or other buildingreal propertypossessions that can be moved, such as furniture, jewelry, and electronic equipmentpersonal property
7 Key Termsrenters insuranceprotection against loss or damage to a renter’s personal possessionsstandard fire policyinsurance against damage due to fire or lightning
8 Key Termsextended coverageother types of protection added to a standard fire policy
9 Key Termsinsurance coverage against damage to property and personal property, additional living expenses if a home is destroyed, and liability protectionhomeowners policy
10 Key Termsan addition to a policy that covers specific property or damagesriderthe full cost of repairing or replacing the property, regardless of the deprecation valuereplacement value
11 Insuring Your Property Each year property is lost or destroyed by natural disasters, accidents, theft, and vandalism.Property insurance provides protection from financial loss on property.
12 Types of Property Insurance Two kinds of property you can insure are real property and personal property.real propertyproperty attached to land, such as a house, business, garage, or other buildingpersonal propertypossessions that can be moved, such as furniture, jewelry, and electronic equipment
13 Types of Property Insurance The cost of renters insurance depends on the amount of coverage, the type of building, and the location of the apartment.renters insurance protection against loss or damage to a renter’s personal possessions
14 College BoundIf your plans include college after high school and you will live off campus, you should consider renters insurance.
15 Types of Property Insurance Because fire poses the greatest threat to property, many property owners buy a standard fire policy.standard fire policy insurance against damage due to fire or lightning
16 Types of Property Insurance Some property owners add extended coverage to their standard fire policy.extended coverage other types of protection added to a standard fire policy
17 Types of Property Insurance Liability insurance protects owners from the costs of injuries to others on their property.Liability pays for two things:Actual damagesLegal expenses
18 Types of Property Insurance Additional living expenses insurance provides coverage for the cost of renting another place to live if a home is damaged.
19 Types of Property Insurance Business owners can get insurance to cover the costs of property.Businesses also buy liability coverage to protect themselves from claims by anyone injured on the premises.
20 Homeowners PoliciesMany insurance companies offer a combination policy with essential protection called a homeowners policy.homeowners policyinsurance coverage against damage to property and personal property, additional living expenses if a home is destroyed, and liability protection
21 What Do Homeowners Policies Cover? Graphic OrganizerWhat Do Homeowners Policies Cover?Structural protectionGarages or shedsPersonal belongingsLiability protectionLiving expenses
22 What Do Homeowners Policies Not Cover? Graphic OrganizerWhat Do Homeowners Policies Not Cover?FloodsLandslidesActs of warNuclear hazards
23 A rider can be added to a homeowners policy. Homeowners PoliciesA rider can be added to a homeowners policy.rideran addition to a policy that covers specific property or damagesInsurance for natural disasters usually costs more.
25 Amount of InsuranceInsurance companies usually recommend that homeowners insure their home for 80 percent of its market value.
26 Amount of InsuranceYou can insure property for either its actual cash value or its replacement value.replacement valuethe full cost of repairing or replacing the property, regardless of the depreciation value
27 Premiums may be affected by the following factors: Amount of InsurancePremiums may be affected by the following factors:The number of claims insurers pay each yearThe amount of coverageThe type of policyThe amount of the deductibleThe location of the propertyThe type of homeThe building materials
28 In addition to vehicles, what types of proptery can be insured? real and personal property
29 What types of coverage are included in homeowners policies? protection against loss from fire, windstorm, explosion, riot or civil commotion, vandalism, and theft
30 What factors affect the cost of property insurance? the number of claims, amount of coverage, type of policy, deductible, location; type of home and materials in it; and preventive measures being taken.