Chapter 6

Personal Risk Management

Slide 2

What Is Homeowner’s Insurance?

• Homeowner’s insurance protects the policyholder from risk of loss to a home and its contents.

• It covers three types of risk.o Fire and other hazardso Criminal activityo Personal Liability

• Acts of nature may not be covered.

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Slide 3

Home Inventory

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Create a home inventory in case you need to file a claim.

Slide 4

How Does Insurance Protect Car Owners?

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• Automobile insurance protects a car owner from losses as a result of accidents and other events.

• Cost depends on model and style of car, age, and driving record of driver.

Slide 5

Types of Coverage

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• Full coverage is required if you have a car loan. It includes:o Liabilityo Collisiono Comprehensiveo Personal injury protectiono Uninsured/Underinsured Motoristo Towing/Rental Car

Slide 6

How Can You Reduce Insurance Costs and Maximize Benefits?

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• Reducing costs can raise overall risk.• Lower costs using

strategies such as higher deductibles, buying online, or comparison shopping.

• Maximize benefits by reviewing your policy or getting umbrella coverage.