Note

Information in this presentation is derived from Insurance for Dummies by Jack Hungelmann.I highly recommend this book.

Odds of a house burning down: 1 in 1,200Source: www.ricedelman.com

But there is more to home insurance than fire insurance

Coverage A: Damage to residenceB: Damage to detached structuresC: Damage, theft of personal property at home or anywhereD: Living costs (e.g., hotel, meals)E: Non-vehicle personal liability for injuries/property damage at home and anywhereF: Medical payments to guests injured on your property

Bottom Line: Insure for 100 percent of the replacement cost of the propertyLong story short, if you do not at least insure for 80%, you may not be fully insured in the event of partial damage (e.g., kitchen fire).Keep in mind, if you pay, say $300,000 for a house, that cost includes the land.If your house is appreciating each year, you may need to increase the insurance

Very Important Coverage!

Covers liability for injuries and property damage, lawsuits, defending lawsuits, covering most non-vehicle personal liability worldwide

You hit the catcher with a baseball bat playing baseball

You spill a drink on the neighbors living room carpet ruining the carpet

General Rule: Set the personal liability on homeowners at the same level you set liability on other policies (e.g., auto)Rationale: nobody knows where a law suit or injury may come from

Earthquakes, tremors, landslides, sinking or shiftingWater that enters the house at or below ground level (e.g., sewer backup, flood)War

What is the maximum annual out-of-pocket expenses?Are there any limits on any expenses such as a specific surgery or room charges?Can you see a specialist without a referral?Is the coverage worldwide?

Liability Coverage (injury and property)Medical Payments (for you)Collision and Comprehensive (your vehicle)Uninsured/Under-insured

CoversLawsuits: suability factor is importantpays for your defenselegal judgmentsLost wagesPain and suffering

Medical Expenses

Example 1Example 2Example 3Injury limit per person$50,000$100,000$250,000Injury limit per accident$100,000$300,000$500,000Property damage limit per accident$25,000$50,000$100,000

Who you hit matters!

TeacherPro AthleteLost Wages$50,000$2,000,000Pain and Suffering$150,000$1,000,000Medical Expenses$100,000$100,000Total Claim$300,000$3,100,000

. . . consider buying an Umbrella Policy

Buy a safe vehicle- test crash results www.iihs.orgChoose high collision and compr. deductiblesKeep a clean driving recordMaintain a high credit scoreInsure your car and home with the same companyDont submit small claims on property damageStudy G.P.A of 3.0 or greater