HDF 322 Lecture 21 Outline of Last Lecture I Life Insurance Outline of Current Lecture II How to Determine Value III Identify Perils for Coverage IV Responsibilities V Texas Ho Coverages VI Types of Exposures VII Coinsurance VIII Personal Artifacts Floater IX Shopping for Insurance 5 Tips Current Lecture I How to Determine Value a 2 3 under insured by 35 34 renters have insurance b ACTUAL CASH VALUE the dollar size you could sell the item today for TODAY S COST DEPRICIATION c REPLACEMENT COST dollar value to purchase new item exactly like the item lost damaged stolen money to purchase new items 15 additional premiums II Identify Perils for Coverage These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute a Causes such as fire and lightening damage from vehicles theft explosions smoke natural causes etc III Responsibilities a Inventory of property by room when purchased pictures b Identify perils for coverage see above c What could happen IV Texas Ho Coverages a HO A limited form inadequate coverage that doesn t provide coverage for common claims b HO B broad form most popular form in state of Texas c HO C All risk form most expensive V Types of Exposures a Loss of property house garage etc physical structures personal belongings NOT LANDS or LOTS b Loss through liability failure to act as a reasonable person injury to others damage to others property VI Coinsurance a penalty for homeowners to hold at least 80 coverage b insured value of home 80 replacement cost deductible c deductible 1 of face value of property d STEP 1 80 of replacement cost e STEP 2 is loss greater than 80 Total loss f STEP 3 if less than 80 is coverage greater than 80 Partial Loss g STEP 3 insurance pays insured value deductible h STEP 4 insured value 80 replacement cost deductible i STEP 5 Adequate insurance loss deductible VII Personal Artifacts Floater a Scheduled property 120 year for Kitt s ring b All risk protection no deductible appraisal VIII Shopping for Insurance 5 Tips a Shop around 3 quotes b Higher deductible c Reduce coverage and on older cars d Home and car from same place e Good credit f Drive less g Discounts h Type of car
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