Textbook Notes (362,812)
Canada (158,056)
Finance (361)
FIN 502 (69)
Chapter 11

Chapter 11.docx

4 Pages
Unlock Document

Ryerson University
FIN 502
Steve Joyce

thChapter 11 Property Home and Automobile InsuranceFebruary 28 2012Property Insurance Vast amount of pure risk as a result of owning or using properties home automobile furniture clothing etcMost important risk is damage or destructionIf you own a home exposed to risk of damage by fire lightning explosion vandalism etcIf you own a car exposed to risk of theft collision bodily injury to yourself passengers Property insurance insures your physical properties home clothing furniture appliances Jewellery and so on against damage or destructiono Most important property insurance is home and automobile industry Home InsuranceProtects your family against the risk of loss damage or destruction of the home its retained outbuildings ex garage its contents ex clothing furniture appliances and covers liability to third parties for injuries suffered on the property Two important questions that you must ask before buying a home insurance policy 1 What are the risks that are covered 2 How much home insurance do I needList of typical risks that are covered by a home insurance policy Damages and destruction to o Fire lightning falling objects riots windstorm hail explosion vandalism flood collapse theft glass breakage ice electrical wiring etcThe more risks covered by the policy the higher the premium going to beHow much home insurance do you need o Contents of the Home Home insurance policy covers damage or destruction to the contents of your home clothes furniture appliances and so on2 ways to estimate the value of the amount of coverage required 1 Estimate the value of the contents as some per cent usually around 30 of the value of the structure which is the home including the land2 Estimate the insurance coverage for the contents is to list and value every item recommended approacho How do you value the home contentsTwo forms of home insurance that you can buy 1 One form covers the depreciated value of the damaged or lost item2 Covers replacement valueDepreciated value of an item the value of replacement or repair for the item to the condition it was in when lost or damaged Standard insurance policy pays the depreciated amountCalculated by subtracting from the price of a new item an allowance for depreciation based on the age of the item that is to be insured Replacement Value of a damaged or lost item is the cost of buying a new item of the same quality Under Replacement Cost Policy lost or destroyed items much be replaced with new ones of comparable quality If chooses not to replace or repaired one will be paid the depreciated value only Replacement Value of a Home o Replacement value of a home for insurance purposes is NOT its current market value but rather its fair market value
More Less

Related notes for FIN 502

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.