Homeowner’s Insurance Health Insurance Auto Insurance

1. Homeowner’s InsuranceHealth InsuranceAuto Insurance Note Information in this presentation is derived from Insurance for Dummies by Jack Hungelmann. I highly recommend this book.

2. Homeowner’s Insurance

3. Odds of a house burning down: 1 in 1,200 Source: www.ricedelman.com But there is more to home insurance than fire insurance

4. Six Parts of a Homeowner’s Insurance Coverage A: Damage to residence B: Damage to detached structures C: Damage, theft of personal property at home or anywhere D: Living costs (e.g., hotel, meals) E: Non-vehicle personal liability for injuries/property damage at home and anywhere F: Medical payments to guests injured on your property

5. Coverage A: Insuring Your Home • Bottom Line: Insure for 100 percent of the replacement cost of the property • Long 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

6. Coverage E: Personal Liability Very Important Coverage! Covers liability for injuries and property damage, lawsuits, defending lawsuits, covering most non-vehicle personal liability worldwide

7. Examples of Claims Coverage E Covers • You hit the catcher with a baseball bat playing baseball • You spill a drink on the neighbor’s living room carpet ruining the carpet

8. Personal Liability, Coverage E General Rule: Set the personal liability on homeowner’s 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

9. Homeowner’s Insurance typically does not cover • Earthquakes, tremors, landslides, sinking or shifting • Water that enters the house at or below ground level (e.g., sewer backup, flood) • War

10. Health Insurance

11. Two Types of Health Insurance • Dollar Maximum Per Claim: Maximum the insurance company will spend for any single injury or illness • Dollar Maximum per lifetime: Maximum the insurance company will pay out over your lifetime

12. Be Careful, regardless of the type Some policies have limits such as $200 a day for room and board $4,000 for XYZ surgery

13. Group Health Insurance Questions to Ask • What is the maximum coverage limit? • 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?

14. Auto Insurance

15. Auto Insurance Policy Categories • Liability Coverage (injury and property) • Medical Payments (for you) • Collision and Comprehensive (your vehicle) • Uninsured/Under-insured

16. Auto: Liability Insurance Covers • Lawsuits: suability factor is important • pays for your defense • legal judgments • Lost wages • Pain and suffering • Medical Expenses

17. Auto Split Limit Liability Insurance

18. Who you hit matters!

19. Auto: Liability ExampleYou hit a ____ who is hurt, misses one year of work

20. So, if you have a high suability factor. . . . . . consider buying an Umbrella Policy

21. Saving Money on Car Insurance • Buy a safe vehicle- test crash results www.iihs.org • Choose high collision and compr. deductibles • Keep a clean driving record • Maintain a high credit score • Insure your car and home with the same company • Don’t submit small claims on property damage • Study– G.P.A of 3.0 or greater