To indemnify against loss PROPERTY INSURANCE Property Insurance

To indemnify against loss PROPERTY INSURANCE

Property Insurance Covers damages to dwelling (house and attached fixtures) and personal belongings inside due to fire, storm, and theft Also provides liability (lawsuits) and medical (bodily injury) insurance if someone gets hurt on your property ex: dog bite or customer slips and falls Usually must take out additional policy for damage by flood, sewer back up, earthquake, etc.

Costs Premium: Monthly costs for insurance Can be escrowed and put into your monthly mortgage payment Deductible: The amount you have to pay outof-pocket for expenses before the insurance company will cover the remaining costs. Higher deductible = lower premium

Replacement vs Cash Value Replacement Costs = cost to buy new Cash value = current value of belongings High premium for replacement costs coverage but more out of pocket expenses if purchase cash value

Tips Assess value of property before purchasing coverage Keep receipts Take photos Get high valued items appraised professionally Store records in another place or fire-proof safe Don’t rely on landlord’s insurance

Renters Insurance Covers your belongings inside of property ex: clothes, television, computer, furniture, equipment Landlord’s insurance covers only building – not your possessions Relatively inexpensive – can get policy from insurance agency Some leases require it for you to rent

Auto: No-Fault Insurance -MI Law Each driver is responsible for their own (comprehensive and collision) insurance for damage to cars regardless of who is at fault Enacted to avoid court trials to identify who was at fault

Auto Insurance By law must have auto liability and property insurance (PLPD) in Michigan which pays for medical or property damage if you are at fault in car accident If pulled over without no-fault insurance can be fined up to $500, put in jail for up to a year, and/or get license suspended