Financial Services _Çô Client Services RFC121 Lecture Notes - Lecture 8: Vehicle Insurance, Smoke Detector, Customer Satisfaction
5 Jun 2018
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Home Insurance Policy Forms
Learning Objective # 4
Analyze factors that influence the amount of coverage and cost of
homeowners insurance.
Deductibles
▪ Deductible is your share of any claim
▪ Is a fixed amount indicated on your policy
▪ The higher your deductible the lower your premium since insurance
company is responsible for less of your loss
▪ People are generally more careful if the cost of being careless is higher
▪ Fewer small claims means less administrative costs for insurer
Exercise – Deductibles
• Theft of a stereo system worth $1,300; the insured has a $250
deductible.
• Vandalism that does $375 of damage to a home; the insured has a $500
deductible.
How Much Coverage Do You Need?
▪ Determine what it would cost to replace or rebuild your home and
purchase an limit of insurance equal to this amount
▪ Have sufficient liability coverage
▪ Include protection for specific items such as collections, cameras, and
jewelry
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