FIN 502 Chapter Notes - Chapter 11: Vehicle Insurance, Property Insurance, Liability Insurance
Document Summary
Most important risk damage or destruction: home risk of damage by fire, lightning, explosions, windstorm, riots, vandalism, car damage due to theft, collision, injury yourself, passenger, third party. Property insurance- insures your physical properties home, clothing, furniture, appliance, jewelry against damage or destruction. Basic principle in every type of insurance one that buys insurance to ensure for large and catastrophic expenses but not for small ones: one transfers most of the risk to an insurance company in return for paying premium. Protects family against risk of loss, damage, or destruction of the home, it related outbuilding, and its contents. Also covers liability to third parties for injury suffered on property. More risk covered the higher the premium. How much home insurance do you need: two ways to estimate amount coverage required. Estimate value of the contents as some per cent of the value of the structure.
