Property & Casualty Insurance Basics. Eric S. Sorensen Agency

Transcription

1 Property & Casualty Insurance Basics

2 Topics Renters Condo / Home Auto Personal Umbrella Policy C.L.U.E. Database

3 Renters Insurance Nearly two-thirds of those living in U.S. rental properties are risking severe financial loss by living without renters insurance. A typical renters policy has $30,000 to $35,000 in coverage for personal possessions and between $100,000 and $300,000 in liability coverage. Most renters policy's cost between $150 to $300 per year. Independent Insurance Agents & Brokers of America

4 Renters Insurance Primary Areas of coverage: Personal Property coverage C Family Liability coverage X Guest Medical coverage Y Optional Coverages Fire Department Charges Increased Coverage to Building Improvements Increased Coverage on Securities Increased Coverage on Silverware Extended Coverage to Jewelry Watches & Furs Business Pursuits Incidental Office, Private School or Studio Increased Coverage on Money

5 Renters Insurance Insured Persons You Any resident relative Any person under the age of 21 in your care

6 Renters Insurance Misrepresentation, Fraud or Concealment We may void this policy if it was obtained by misrepresentation, fraud or concealment of material facts. If we determined that this policy is void, all premiums paid will be returned to you since there has been no coverage under this policy. We do not cover any loss or occurrence in which any insured person has concealed or misrepresented any material fact.

7 Renters Insurance Personal Property Protection Personal property owned or used by an insured person anywhere in the world.

8 Renters Insurance Limitations $200 Money $200 Property used or intended for business while away from residence $250 Theft of any recording or storage media while away from residence $1,000 Property used or intended for business while at residence $1,000 Trading Cards $1,000 Accounts, Bills, Deeds, etc. $1,000 Manuscripts $1,000 Watercraft & their trailers $1,000 Trailers not used with watercraft

9 Renters Insurance Limitations (cont) $1,000 Theft of Jewelry, Watches, precious stones, furs, etc. $1,000 Any motorized land vehicle parts $2,000 Theft of firearms and their related equipment & accessories. $2,500 Motorized land vehicles used solely for the service of the residence.

10 Renters Insurance Losses we cover (Named Perils) 1. Fire or Lightening 2. Windstorm or Hail 3. Explosion 4. Riot or Civil Commotion 5. Aircraft 6. Vehicles 7. Smoke 8. Vandalism & Malicious Mischief

11 Renters Insurance Losses We Cover (cont) 9. Falling Objects 10. Weight of ice, snow or sleet 11. Increase or decrease of artificially generated electrical current to electronics. 12. Bulging, burning, cracking or rupture of a steam or hot water heating system 13. Water or steam that escapes from a plumbing, heating or air conditioning system 14. Freezing of a plumbing, heating or air conditioning system 15. Theft or attempted theft 16. Breakage of glass

12 Renters Insurance Losses Not Covered Flood Sewage backup Water on or below the surface of the ground Earth Movement earthquake, landslide, etc Building Codes enforcement Failure of insured to take reasonable steps to protect property from a loss Intentional criminal acts Vapors, fumes, etc.

13 Renters Insurance Replacement Cost vs Actual Cash Value Replacement Cost we will reimburse you for the amount actually and necessarily spent to repair or replace the property with similar property of like kind and quality. Actual Cash Value Payment is based upon the actual cash value basis with a deduction for depreciation.

14 Renters Insurance Replacement cost will not apply to: Antiques, fine arts, paintings, statuary & similar articles Memorabilia, souvenirs & collector items Property that was obsolete due to age or condition Motorized land vehicles used to service residence

15 Renters Insurance Scheduled Personal Property Utilized on valuable items that are difficult to replace. Examples Jewelry Musical Instruments Coin Collections Fine Art Antiques All Peril

16 Renters Insurance Guest Medical Pays for reasonable expenses incurred for necessary medical, surgical, x-ray and dental services, ambulance, hospital, licensed nursing and funeral services, prosthetic devises, eye glasses, hearing aids and pharmaceuticals.

17 Renters Insurance Family Liability Pays for damages which an insured person becomes legally obligated to pay because of bodily injury or property damage

18 Renters Insurance What are some examples of Family Liability Claims? Playing catch & ball breaks a window Tripping someone accidentally on the stairs in the Spectrum Dog bites Trampolines Horses in road Kids damaging a neighbors car

19 Condominium and Homeowners Insurance

20 Condo / Home Insurance Similar coverages to renters for personal property but also includes protection for your dwelling.

21 Condo / Home Insurance Condominium Coverage Building Property covers the real property owned by the insured as well as structures used to service the premises and insurance responsibilities expressed by the condo association. Does not cover land

22 Condo / Home Insurance Condominium Coverage Most Condominium Association policies cover from the sheetrock out. You are responsible for any damage to the inside of you condo. Examples Overflowing toilet or tub on upper level Fire Smoke damage from grease fire Flooding by broken pipe inside your unit

23 Condo / Home Insurance Homeowners Coverage Dwelling Protection includes your dwelling and any attached structures, construction materials at your dwelling, wall-to-wall carpeting Other Structures includes structures separated from your dwelling, fences, etc.

24 Homeowners Insurance Losses not covered: 1. Freezing of plumbing while building is vacant 2. Freezing of fences, pavements, retaining walls etc 3. Seepage of water, steam or fuel from plumbing, ac or auto fire protection 4. Collapse 5. Theft from residence while under construction 6. Vandalism if dwelling is vacant for more than 30 days 7. Wear & tear, mechanical breakdown, rust, insects

25 Auto Insurance

26 Auto Insurance Your policy was issued in reliance on the information you provided concerning autos and persons insured by the policy. will not be liable for any claims or damages which would otherwise be covered, if the policy had been obtained or renewed through material misrepresentation, fraud, or concealment of material fact.

27 Auto Insurance Important changes that must be promptly reported: Buying or selling a car Drivers residing in your household Moving

28 Auto Insurance Key Points to remember: Can t insure what you don t own If your vehicle is used for business it must be disclosed and rated for that purpose. We can t be obligated if an insured person voluntarily takes any action or makes any payments other than for covered expenses for bail bonds or first aid to others.

29 Auto Insurance Bodily Injury Liability Typically provides coverage for damages which a person insured under this coverage is legally obligated to pay because of bodily injury they cause to others in a covered accident. If you are responsible for injuring someone in an accident, you may be liable for, among other things, the costs of their medical treatment, lost wages, and pain and suffering.

30 Auto Insurance Property Damage Liability Typically provides coverage for damages which a person insured under this coverage is legally obligated to pay because of damage they cause to the property of others in a covered accident. Consider the potential costs if you destroy someone else's expensive new car, or cause structural damage to a home, or storefront.

31 Auto Insurance What are the State of Utah minimum Liability Limits? Bodily Injury 25,000 / 65,000 Property Damage 15,000

32 Property Damage coverage how much is enough? $15,000?? $25,000?? $50,000?? $100,000?? $300,000?? $1,000,000?

33 This Accident cost $189,000!! The Jeep was at fault, they only had $50,000 in coverage. They lost their home, savings, retirement any assets the lawyers could find.

34 Auto Insurance Factors to consider on Liability limits: The total amount of assets you have to lose Your future earnings The high cost of health care The size of lawsuit verdicts Your need to protect your savings for retirement and/or education Any contractual obligations you may have to a lessor/lender Your tolerance for risk The low cost of higher coverage limits.

35 Auto Insurance Uninsured Motorist We will pay those damages which an insured person is legally entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injury sustained by an insured person. The bodily injury must be caused by an accident and arise out of the ownership, maintenance or use of an uninsured motor vehicle. Insured Persons 1. You and any resident relative. 2. any other person while in, on, getting into or out of your insured auto with your permission.

36 Auto Insurance Underinsured Motorist We will pay those damages which an insured person is legally entitled to recover from the owner or operator of an underinsured motor vehicle because of bodily injury sustained by an insured person. The bodily injury must be caused by an accident and arise out of the ownership, maintenance or use of an underinsured motor vehicle. Insured Persons 1. You and any resident relative. 2. any other person while in, on, getting into or out of your insured auto with your permission.

37 Auto Insurance Personal Injury Protection (PIP) coverage, also known as No-Fault coverage, typically provides coverage for reasonable and necessary medical expenses, income loss, loss of services, and death benefits for persons who are injured as a result of a covered accident. It also provides protection for passengers as well as pedestrians in covered accidents involving the insured vehicle.

38 Auto Insurance PIP (cont) PIP is required by law in Utah and provides the following benefits: Medical Expenses - reasonable and necessary expenses incurred for the care, recovery or rehabilitation of the injured person (subject to a limit you select) Income Continuation - wages you would have earned if you had not been hurt (waiting period must be fulfilled and subject to a maximum: weekly amount, total amount, time period) Loss of Services - services you are no longer able to provide for yourself or your family because you are injured, such as housekeeping and yard work (waiting period must be fulfilled and subject to a maximum daily amount, time period) Funeral Expenses - up to a specified limit per person Survivor Benefit - up to a specified limit per person

39 Auto Insurance Collision..direct and accidental loss to an insured auto (including insured loss to an attached trailer) from a collision with another object or by upset of that auto or trailer.

40 Auto Insurance Comprehensive..direct and accidental loss to an insured auto not caused by collision. Coverage includes but is not limited to loss caused by missiles, falling objects fire, theft or larceny, explosion, earthquake, windstorm, hail, water, flood, malicious mischief, vandalism, riot or civil commotion. Glass breakage whether or not caused by collision, and collision with a bird or animal is covered.

41 Auto Insurance Additional coverages Rental Reimbursement If you have collision or comprehensive coverage and the loss involves either coverage. Repays you for cost of renting an auto from a rental agency or a garage. Towing and Labor Repays you for labor done at the initial place of disablement. Sound System will pay for loss to a sound system permanently installed in your auto by bolts, brackets or other means

42 Personal Umbrella Policy

43 Personal Umbrella Policy Pays for damages which an insured person becomes legally obligated to pay because of bodily injury, personal injury or property damage. Most common is a $1,000,000 policy Requires minimum underlying limits on supporting policies (i.e. auto, home, rv, boat, atv, investment properties, etc.)

44 C.L.U.E. Database C.L.U.E. (Comprehensive Loss Underwriting Exchange) is a claim history information exchange that enables insurance companies to access prior claim information in the underwriting and rating process. C.L.U.E. Personal Property reports contain up to five years of personal property claims matching the search criteria submitted by the inquiring insurance company. Data provided in C.L.U.E. reports includes policy information such as name, date of birth and policy number, and claim information such as date of loss, type of loss and amounts paid. More than 90 percent of insurers writing homeowners coverage provide claims data to the C.L.U.E. Personal Property database. By providing immediate interactive information, C.L.U.E. Personal Property helps insurers and agents make immediate business decisions

45 QUESTIONS

46 Thank You Eric Sorensen 1047 South 100 West #150, Logan Between McDonalds & Logan River Golf Course (435)