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Chapter 10. Property and Liability Insurance. The Bottom Line. How much homeowner’s insurance do you need? Cover the replacement of your home if complete loss Protection against inflation eroding coverage Special disaster coverage in flood or earthquake areas Home office coverage
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Chapter 10 Property and Liability Insurance
The Bottom Line • How much homeowner’s insurance do you need? • Cover the replacement of your home if complete loss • Protection against inflation eroding coverage • Special disaster coverage in flood or earthquake areas • Home office coverage • Adequate personal property coverage • Possessions needing special coverage (coins, jewelry) • Additional liability coverage if assets are greater than liability limits
Keeping Your Costs Down – Discounts and Savings • 3 factors determine the cost of your homeowner’s policy: • Location of your home • Type of structure • Level of coverage and policy type • Keep costs down by selecting a financially sound insurer with low comparative rates.
Keeping Your Costs Down – Discounts and Savings • High deductible discounts – pay less for larger deductibles. • Security system/smoke detector discounts – save 2-5%. • Multiple policy discounts – discount for more than one policy with insurer. • Pay your insurance premiums annually.
Keeping Your Costs Down – Discounts and Savings • Other discounts – fire-resistant homes, age over 55, long-time policyholder. • Consider a direct writer – no agents, so no salaries or commissions. • Shop around – premiums vary by 25%. • Double-check your policy – don’t want errors once you file a claim.
What To Do in the Case of a Loss Checklist 10.2 • Report your loss immediately. • Make temporary repairs to protect your property. • Make a detailed list of everything lost or damaged. • Maintain records of the insurance settlement process. • Confirm the adjuster’s estimate.
Filing a Claim • Your “to-do” list if involved in a car accident: • Get help for the injured. • Move car to a safe place. • Get identification of witnesses. • Cooperate with police. • Take a test for alcohol if you believe the other driver is under the influence.
Filing a Claim • Write down recollection. • Don’t sign anything or admit guilt. • Get a copy of the police report and make sure it is accurate. • Call your insurance agent as soon as possible. • Cooperate with your insurer. • Record all expenditures associated with the accident. • If in a serious accident, then meet with a lawyer to know your rights.