BU353 Lecture Notes - Lecture 13: Vehicle, Personal Property, Risk Management Tools
Document Summary
Fire was a major peril covered in first policies. I(cid:374)su(cid:396)e(cid:396) lia(cid:271)le fo(cid:396) (cid:862)all da(cid:373)age (cid:449)hi(cid:272)h is a(cid:374) i(cid:373)(cid:373)ediate (cid:272)o(cid:374)se(cid:395)ue(cid:374)(cid:272)e of fi(cid:396)e o(cid:396) (cid:272)o(cid:373)(cid:271)ustio(cid:374), (cid:449)hate(cid:448)e(cid:396) the (cid:272)ause(cid:863: this covers direct losses only. Expanded over time to cover other perils. Location: fire protection, theft, vandalism, etc. Basic form covers listed perils for damage to home: other forms cover all risks except those specifically excluded. Personal property coverages change with different policy forms: broad and basic cover basic perils, comprehensive covers all perils except those excluded. Te(cid:374)a(cid:374)t"s i(cid:374)surance: offers some of the same coverages as home insurance, covers possessions, liability coverage, pays additional living expenses, may also p(cid:396)o(cid:448)ide te(cid:374)a(cid:374)t"s i(cid:373)p(cid:396)o(cid:448)e(cid:373)e(cid:374)t (cid:272)o(cid:448)e(cid:396)age. Condominium coverage: same as tenants plus, o(cid:449)(cid:374)e(cid:396)"s i(cid:373)p(cid:396)o(cid:448)e(cid:373)e(cid:374)t (cid:272)o(cid:448)e(cid:396)age, may p(cid:396)o(cid:448)ide (cid:272)o(cid:448)e(cid:396)age if (cid:272)o(cid:396)po(cid:396)atio(cid:374)"s (cid:272)o(cid:448)e(cid:396)age is i(cid:374)ade(cid:395)uate. Insurers use risk management tools to minimize the impact of catastrophe risk: loss control, mitigation, underwriting controls, loss financing, reinsurance, market-based protection. Increasing deductibles: changing limits, capping replacement cost coverage.
