CHAPTER 10: PROTECTING YOUR PROPERTY Property Insurance Basics Types of Exposure : 1. Property loss —economic loss because your property is damaged, destroyed, or stolen. You should: Inventory your property. Identify perils to be insured against. Types of liability protection:
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Types of Exposure:
1. Property loss—economic loss because your property is damaged, destroyed, or stolen.
Professional policy, such as malpractice or errors and omissions
2.Liability—damage you cause others, either through your actions or negligence.
This part is divided into 2 sections.
Section I deals with loss to your property, under what conditions it will be covered, and the extent of coverage.
Section II deals with liability which may arise in connection to this property, either through your actions or negligence.
Perils which are rarely covered are flood, earthquake, and acts of war. Your policy may also exclude other perils.
States who is covered under the policy, such as the homeowner and residents of the household. Coverage for guests and students away at college may be limited.
Most policies cover your personal property worldwide unless it's at a second home.
Ex: Your home is covered for $100,000.
Actual Cash Value is what the property is worth today (depreciated value).
Money $ 200
Deductible is the amount you must pay out of pocket on covered losses.
Deductibles help hold down insurance costs because they eliminate frequent small loss claims which are proportionately more expensive to administer.
Replacement cost coverage rather than actual cash value so that you will have enough to replace your property.
Increasing liability and medical payments limits, as standard coverage in these areas is usually quite low.
Increase your deductible. Better to bear small costs out of pocket and insure adequately against the catastrophic.Consider . . .
Part A: Liability
If you only have the minimum, your insurer will cover at most:
1. Other driver was at fault.
2. Other driver had no insurance.
3. Damages were incurred.
Part D: Damage to Your Car
The Claims Adjustor Will: