1. South-Western Publishing©2002 By Charles J. Jacobus Real Estate Principles Ninth Edition Real Estate: An Introduction to the Profession Ninth Edition South-Western Publishing©2002

2. Chapter 24 Property Insurance _______________________________________

3. South-Western Publishing©2002 Insurance Fire insurance is the foundation of property damage policies.

4. South-Western Publishing©2002 Insurance Terms Insured = Homeowner Insurer = Insurance Company Insurance Premium = Payment

5. South-Western Publishing©2002 Insured Risks Endorsements Hail Tornado Earthquake Riot Windstorm Smoke damage Explosion Glass break Water pipe leaks Vandalism Freezing Building collapse

6. South-Western Publishing©2002 Homeowner Policy Contains coverage deemed by insurance experts to be the most useful to persons who own the home in which they live.

7. South-Western Publishing©2002 Other Insurance Tenant’s policy – provides coverage for personal property of renter. Condominium policy – covers personal property of owner.

8. South-Western Publishing©2002 Today’s cost to replace the damaged portion Insurance carried 80% of today’s cost to replace whole structure RECOVERY x= Application of the Co-insurance Requirement

9. South-Western Publishing©2002 Key Terms All-risk policy Broad form (HO-2) Endorsement Homeowner policy Insurance premium Insured New for old Old for old Peril Public liability