CHAPTER 10: PROTECTING YOUR PROPERTY. College Students. Property Insurance Basics. Property insurance Liability insurance. Property Insurance Basics. Types of Exposure : 1. Property loss —economic loss because your property is damaged, destroyed, or stolen. You should:
Types of Exposure:
1. Property loss—economic loss because your property is damaged, destroyed, or stolen.
2.Liability—damage you cause others, either through your actions or negligence.
Types of liability protection:
Other insurance—If multiple companies insure the property, the companies together will not pay you more than your economic loss.
Insurance companies do not want you to be able to profit from a loss; they wish to prevent the moral hazard that the insured would be tempted to destroy property in order to gain.
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.
Differ from company to company
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: