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Other Homeowner-Related Policies Umbrella Insurance. No, this doesn’t insure damage to your umbrella. Umbrella insurance provides coverage in the event you have an unexpected or weird loss not covered by your other policies or which losses exceeds the coverage amount of the primary policy. It’s like an extra layer of coverage. Identity Restoration. Identity theft is on the rise. An identity thief obtains your personal information, and can cause all kinds of problems. They can drain bank accounts, run up fraudulent credit card charges and ruin your credit rating. They can even get medical treatment using your health insurance! If your identity is stolen it can cause all sorts of financial loss from which it can take years to recover. Identity Restoration insurance is a type of coverage that many companies are now making available to their customers through their homeowner’s policy. This coverage provides the insured with a fraud specialist to handle restoring their identity and also indemnifies the insured for losses resulting from the theft of their personal information. (Opt.) Advise students that they will explore identity theft in this lesson’s Debate, Persuade, Inform activity. Reflect on Learning. Can you state what damage is covered by a homeowners policy? Answer: Property damage to/loss of the home due to fire, etc. and personal liability for injuries suffered by others caused by the homeowner. Can anyone recall whether a tenant can recover from the landlord any losses suffered as a result of a fire, flood, theft? Recall Chapter 9, that renters should buy renter’s insurance because loss of their personal property is not covered under the landlord’s homeowner’s policy. Auto Insurance Anyone who owns or leases a car needs auto insurance. In fact, in most states it’s illegal to drive a car that is not insured. A car damaged in an accident, even a fender-bender, can be very expensive to repair. And what if injuries are involved? Car accidents can cause huge financial losses. If you have a car loan, the lender will require you to have auto insurance because the car is collateral for the loan . Losses Covered Under an Auto Policy. An auto insurance policy anticipates and guards against many different driving-related risks: Bodily Injury. Let’s say you are driving and cause a car accident that injures someone else. They end up with large medical expenses and also lose income because they can’t work for awhile due to their injuries. The bodily injury coverage under your auto insurance policy covers their losses. The point of bodily injury liability insurance is that it protects you against loss from the victim’s claims when you’ve caused an accident. Property Damage. Basically this is same as the above, except that it covers damage to property . If you cause a car accident that damages someone else’s car, or you make a bone-head move like backing into your neighbor’s fence, the property damage portion of your auto policy covers the cost of repairing the mess so you don’t have to come out-of-pocket. Collision Coverage. The other big risk addressed by car insurance is the cost to repair damage to your car in the event of a collision. This is called collision coverage . Collision coverage is for damage caused to your car by a collision only. If you want coverage for something else, like theft or vandalism, or a big branch PRODUCT PREVIEW
Chapter 15 | Protect What You’ve Earned 288
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