Property Insurance

1. Property Insurance • Dr. Jim Burton • Marketing & Real Estate • Richards College of Business

2. Overview • Risks of Property Ownership • Property Loss Insurance • Earthquake Insurance • Liability Insurance • Flood Insurance • Mortgage Life Insurance • Business Owner’s Policy

3. Risks of Property Ownership • Loss of property due to fire, wind, water, vandalism, etc. • Loss of property use • Additional expenses from no use • Liability losses: property damage, injury, medical, etc.

4. Property Loss Insurance • Direct Losses: repairing property • Indirect Losses: living expenses, business income, etc. • Liability Insurance: lawsuits & claims

5. Homeowner’s Policy • Fire & other perils • Personal liability • Medical payments • Theft • Personal property • Other structures

6. Other Homeowner’s Terms • Replacement cost - cash value • Personal articles floater • Credit card losses • Factors affecting rates • Coinsurance - 80% • Renter’s insurance • Urban older homes - repair

7. Earthquake Insurance • Not covered in homeowner’s • Can be covered by endorsement • Cost is high • 10% deductible

8. Liability Insurance • Protects against lawsuits • Typically $100,000 • Relatively cheap • Should increase to $1 million • Umbrella liability policy - home, auto, boat, etc.

9. Flood Insurance • National Flood Insurance • FEMA Maps • 100 year flood areas • Floodways • Relatively cheap

10. Mortgage Life Insurance • Pays off mortgage at death of insured • Relatively expensive • Term life as option

11. Business Owner’s Policy • Buildings replacement costs • Personal property • Additional coverages - income loss, etc. • Optional coverages - signs, theft, glass, etc. • Business liability insurance