Homeowner’s Insurance Health Insurance Auto InsuranceHomeowner’s InsuranceSlide 3Six Parts of a Homeowner’s InsuranceCoverage A: Insuring Your HomeCoverage E: Personal LiabilityExamples of Claims Coverage E CoversPersonal Liability, Coverage EHomeowner’s Insurance typically does not coverHealth InsuranceTwo Types of Health InsuranceBe Careful, regardless of the typeGroup Health Insurance Questions to AskAuto InsuranceAuto Insurance Policy CategoriesAuto: Liability InsuranceAuto Split Limit Liability InsuranceSlide 18Auto: Liability Example You hit a ____ who is hurt, misses one year of workSo, if you have a high suability factor. . .Saving Money on Car InsuranceNote Information in this presentation is derived from Insurance for Dummies by Jack Hungelmann.I highly recommend this book.Odds of a house burning down: 1 in 1,200Source: www.ricedelman.comBut there is more to home insurance than fire insuranceCoverage A: Damage to residenceB: Damage to detached structuresC: Damage, theft of personal property at home or anywhereD: Living costs (e.g., hotel, meals)E: Non-vehicle personal liability for injuries/property damage at home and anywhereF: Medical payments to guests injured on your property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 insuranceVery Important Coverage!Covers liability for injuries and property damage, lawsuits, defending lawsuits, covering most non-vehicle personal liability worldwideYou hit the catcher with a baseball bat playing baseballYou spill a drink on the neighbor’s living room carpet ruining the carpetGeneral 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Earthquakes, tremors, landslides, sinking or shiftingWater that enters the house at or below ground level (e.g., sewer backup, flood)War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 lifetimeSome policies have limits such as$200 a day for room and board$4,000 for XYZ surgery1. What is the maximum coverage limit?2. What is the maximum annual out-of-pocket expenses?3. Are there any limits on any expenses such as a specific surgery or room charges?4. Can you see a specialist without a referral?5. Is the coverage worldwide?1. Liability Coverage (injury and property)2. Medical Payments (for you)3. Collision and Comprehensive (your vehicle)4. Uninsured/Under-insuredCovers1. Lawsuits: suability factor is importantpays for your defenselegal judgmentsLost wagesPain and suffering2. Medical ExpensesExample 1 Example 2 Example 3Injury limit per person$50,000 $100,000 $250,000Injury limit per accident$100,000 $300,000 $500,000Property damage limit per accident$25,000 $50,000 $100,000Who you hit matters!Teacher Pro AthleteLost Wages $50,000 $2,000,000Pain and Suffering$150,000 $1,000,000Medical Expenses$100,000 $100,000Total Claim $300,000 $3,100,000. . . consider buying an Umbrella Policy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