16 Property and Auto Insurance

16 Property and Auto Insurance - Prentice-Hall, Inc. A...

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Prentice-Hall, Inc. 1 Chapter 10 Property and Liability Insurance A question: • Suppose a tornado destroyed your home. Could you afford to replace your dwelling and its contents? Most people can’t Events like this can • Most people can t. Events like this can cause financial ruin. • That’s why we transfer some of this risk to insurance policies. Terms • _________ Insurance : coverage that protects real and personal property from catastrophic losses Insurance: protects against the • _________ Insurance : protects against the financial consequences from the insured’s responsibility for property losses or injuries to others. Terms: • _________: The cause of a “loss” – Tornado –F ire Negligence – Negligence • Failure to act in a reasonable manner or to take necessary steps to protect others from harm. Terms: • Deductibles : limit what a company must pay for small losses. • ______________ : The amount necessary to repair rebuild or replace an asset at to repair, rebuild or replace an asset at today’s prices • Premiums : The monthly payment you pay for your insurance coverage Homeowner’s Insurance Policies • Cover multiple perils (e.g., fire, theft, storms, faulty household systems or appliances, riot, volcanoes, vehicles, aircraft aircraft)
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Prentice-Hall, Inc. 2 Six Basic Packaged Homeowner's Policies • HO-1: Basic form homeowner’s insurance • HO-2: Broad form homeowner’s insurance • HO-3: Special form homeowner’s insurance HO 4: Renter’s or tenant’s insurance • HO-4: Renter s or tenant s insurance • HO-6: Condominium owner’s insurance • HO-8: Modified coverage – older homes homeowner’s insurance HO-1: ________ Form
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This note was uploaded on 06/06/2011 for the course HACE 3200 taught by Professor B during the Spring '09 term at UGA.

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16 Property and Auto Insurance - Prentice-Hall, Inc. A...

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