Homeowner’s & Renter’s Insurance
Homeowner and renter’s insurance are combination policies that protects property as well as individuals present on the property. The primary characteristics of a homeowner and renter’s policies are as follows:
⁃ Property Coverage – The homeowner or renter’s policy will generally insure the subject property against damages from specific types of occurrence, such as fire, theft, flood, etc. It will generally cover the physical residence as well as private buildings located on the real estate.
⁃ Liability Coverage – The homeowner or renter’s policy generally provides protection (or indemnification to the property owner) against losses resulting from personal injuries suffered on the insured property.
• Fire Insurance – Fire insurance insures specific property for a specific amount against damages from fire and fire-related damages (such as smoke, water, etc.) These policies exclude coverage for certain types of fires, such as certain fireplace fires or arson. These policies often place other conditions on coverage, such as the policy owner living at the location where the insured property is located.
⁃ Discussion: Why do you think these are common forms of property coverage? Can you think of a reason why mortgage holders would require a homeowner to purchase such a policy? How do you feel about the ability of an insurer to select specific instances of damage or causes of damage to exclude from coverage?