FIN 502 Lecture Notes - Home Insurance, Vehicle Insurance, Liability Insurance
Document Summary
One buys insurance to transfer most of the risk to an insurance company in return for paying a premium. The required premium depends on both the statistical probability of the loss (or expenses) and the expected amount of the loss (not the same as insured face value since property is rarely totally destroyed) Property insurance: insures your physical properties your home, clothing, furniture, appliances, jewelry and so on against damage or destruction. Home insurance and automobile insurance the two major areas in which the average canadian family is exposed to potentially large and catastrophic losses. Def"n: protects the family against the risk of loss, damage, or destruction of the home, its related outbuildings(garage), and its contents (clothing, furniture, appliances) Also covers third parties for injuries suffered on the property: two question that are important before buying home insurance. How much home insurance do i need: list of typical risks/damage/destruction:
