1. Introduction of the topic and yourself (name, where you work, job title)

2. Risk Factors Damage to home Damage to your stuff or personal property
Liability from lease or rental agreement
Liability from parties on the property
Personal liability for activities of people living in the house
Costs of temporary housing if home damaged

3. Who Needs Homeowner Insurance?
All different types of people need it… whether they:
Rent an apartment or house
Buy a home
Purchase a vacation property as a second home
Buy property for rental income or investment
Type of insurance is different based on whether you own or rent, the type of home it is and how you will use the property – residence or rental income
Go over the basics of homeowners insurance. Briefly discuss different types and most common forms of it.

4. Homeowner Policy Forms
HO-2, HO-3, HO-5 and HO-8 all cover one or two-family homes
Major difference is perils or things that can cause damage to the home
HO-3 is the most popular
Least
Most
Amount of Coverage
HO-2 & HO-8
HO-3
HO-5

5. Renting an Apartment or Home Do You Need Insurance?
Write down everything you can remember in your room, house – furniture, clothes, electronics, etc.
Make an inventory list and include the value of the property
Visit the website:

6. HO-4 Renters Insurance
Your landlord may have insurance, but it only protects their building
Your belongings are not covered under their policy
Each roommate needs their own policy
An average two bedroom apartment can easily contain personal property that would cost more than $20,000 to replace
Instructor- 1 minute…another slide with what is covered….

7. Renting an Apartment or Home Do You Need Insurance?
What if you had a fire and had to replace your stuff? How much would that cost?
What if someone got hurt on your property and sued you? Do you have enough in savings to cover court costs and obtaining a lawyer?
What if your luggage was stolen while on a trip?
The HO-4 homeowner renters policy will cover you in each of these situations

8. HO-4 Renters Insurance
Renters insurance protects individuals who live in a house, mobile home, condominium or apartment that is owned by another person
You are protected against:
Theft
Loss of personal property
Loss of use of the apartment due to damage
Liability from activities
Instructor- 2 minutes- go over what is covered briefly relating it to the exposures and perils discussed earlier.

9. What if I live in a Condo?
Some condo unit owners may be responsible for some of the building structure
Be careful and find out what is your responsibility to insure and what the condo association insures
Condo owners also need to insure their personal belongings and need liability coverage in case they are sued
The HO-6 condo policy will cover you but make sure you ask about desired limit and optional coverage.

10. Two Major Sections of a Homeowners Policy
Property Coverage
Dwelling & attached garage
Other structures – detached garage, shed, gazebo
Personal property- furniture, clothing
Loss of use – expenses to live elsewhere when home is damaged
Liability Coverage
Personal liability
Medical payments to others
Go over what is included in the homeowners policy. Give examples and real life stories to illustrate.

11. Match the Homeowner Resident of a single-family home
Tenant in a rented home
Owner of a 40-year-old home
Owner of a condo unit
Owner of a two-family residence
HO-3
HO-4
HO-6
HO-8
HO-7
Instructor- 5 minutes- let students do this on their own and then go over answers: Trick question- there is no HO-7
HO-3
HO-4
HO-8
HO-6

12. Who Can Purchase a Homeowners Policy?
People owning a home
Those renting a home or apartment
People who own duplex as long as they are living in one side of duplex
Not Eligible:
Apartment building owners
Farms or ranches
Landlords

13. Homeowner Property Coverage
Coverage A Dwelling – cost to replace your home and attached garage
Coverage B Other Structures – cost to replace shed, fence, gazebo or detached garage
Coverage C Personal Property – cost to replace your contents
If you are a renter you don’t have Coverage A or B, but you do have Coverage C to protect your contents

14. What’s Included in Coverage C Personal Property?
Property owned by you and also stuff borrowed and used by you
Your contents are covered worldwide so when you travel you luggage is covered
Some of your property is limited in how much you can recover (e.g., cash $200 and boats $1500)
Some items are limited if they are stolen (e.g., jewelry $1500 and guns $2500)
You can purchase additional coverage if needed – also called a “floater”
Go over what is included in the homeowners policy. Give examples and real life stories to illustrate.

15. Is That Covered?
Not everything is covered by your homeowners insurance
These are not covered:
Animals, birds, fish
Motor vehicles
Aircraft and hovercraft
Property of others
Business records
Go over what is not covered in your homeowners policy. Use examples and different scenarios to illustrate.

16. Perils That Are Usually Covered by Homeowners Policy
Fire
Lightning
Vandalism
Theft
Wind damage
Tree damage
Ask students to name possible perils that could happen to their home. Let a few students answer then click twice to reveal the above perils. You can add more. Use examples and stories to illustrate.
Coverage is subject to exclusions on the policy

17. Common Exclusions
All homeowner’s insurance policies contain exclusions for certain perils not covered by the policy – usually catastrophic occurrences
Changes in building ordinances or laws
Earth movement
Water damage including flood
Power failure
Neglect by insured
War or nuclear hazard
Intentional loss
Go over common exclusions. Use examples and different scenarios to illustrate.

18. What types of claims are covered?
Check with your agent but try to get the broadest coverage commonly known as “open” perils
Deductibles apply and may be higher for some occurrences (e.g., wind)
Policies have exclusions so check the policy
Earthquake and flood are not covered unless you purchase extra coverage

19. Determining the Amount of the Loss
Three questions to ask:
Is the event a covered peril?
Is there an exclusion on the policy?
How much should be paid?
Determining value:
Replacement Cost: The actual cost of replacing property without a deduction for depreciation
Actual Cash Value: Replacement (current) cost minus depreciation
Depreciation: Decrease in value of property due to use, age, etc.

20. What is the difference between replacement cost and actual cash value?
List 5 items that you own and can be found in your house
Next to each item write down how old it is
Next, estimate how much you paid for the item
Apply this chart to each item
Age of Item
Worth
Item is less then 3 months old
New, no loss in value
Item is 4-6 months old
90% of what you paid
Item is 7-11 months old
80% of what you paid
Item is 1-2 years old
50% of what you paid
Item is more then 2 years old
20% of what you paid
We always want things to stay the same not get any wear or tear or lose any value. In reality though everything ages and everything loses value. Pass out the worksheet on replacement cost vs. cash value (go to slide show and click on the words “replacement cost” for the worksheet). Go over worksheet, what students need to do, ask if there are any questions. Then allow students 5-10 to complete. Once class seems finish ask for some feedback, what type of items they picked, difference in the two prices, were they surprised at the results

21. What happens if I can’t live in my house?
If your claim is covered by the insurance company then they will also pay for any additional living expenses under a coverage commonly known as “loss of use”
Pays for hotel expenses, additional food costs – restaurants and other additional expenses

22. What To Do When Filing A Claim
Call the police if house has been broken into
Protect the house from further damage
File the claim with your insurance company
Allow insurance company to inspect and appraise home
Cooperate throughout the whole process
Keep all legal papers, they must be sent to insurance company
Discuss what you should do if you have to file a claim.