Personal Finance Chapter 11 - Second Half

A supplement to auto and homeowner’s insurance that provides additional personal liability coverage §Especially important for wealthy people §Must show proof of existing coverage

An insurance policy that protects your possessions within a house, condo, or apartment that you are renting

Specifies maximum coverage for
personal assetsAlso covers liability from damages to a person on your property

•Contact insurance company immediately if damage occurs •Claims adjuster estimates damage •Present your home inventory •Get an independent estimate •Appeal low estimates by
insurance company

Coverage provides protection
if someone is injured on your property

§Value of insured home §Deductible §Location §Degree of protection §Discounts

§Included to cover any lawsuits resulting from an event occurring in your home or on your property

An extension of the homeowner’s insurance policy that allows you to itemize your valuables

Contains detailed information about your personal property that can be used when filing a claim

Pays you for the value of the damaged property after considering depreciation

Pays you for the actual cost of replacing the damaged property
Minimum limit—many insurers require at least 80% of replacement cost
Financial institutions may require enough insurance to cover your mortgage

1, 2, 4, 8
Specify what the HMO covers and doesn't cover

3, 5
states "protected against all events"

Provides insurance in the event of property damage, theft, or personal liability relating to your home

•Characteristics of your car §Value of car §Repair record of your car •Your personal characteristics §Your age §Your mileage Your driving record §Your location §Your driver training §Your school performance