《风险管理与保险 齐瑞宗》Treisch12e_Ch15.pptVIP

Risk Management for HomeownersChapter 15 Chapter Objectives List the basic coverages in a homeowner’s policy and the limits of liability for each Identify property that is excluded from the homeowners’ policy and the special dollar limits for certain types of property Describe how additional living expense losses are determined and how the loss settlement clause in the homeowners’ policy operates Explain the doctrine of concurrent causation and its role in property insurance policies Identify the perils insured in homeowners’ policies Identify and explain optional endorsements to the homeowners’ policy List the coverages in the comprehensive personal liability section of the homeowners’ policy and identify the major exclusions Determine appropriate insurance coverages for a personal risk management program Introduction Traditionally, homeowners’ insurance has been a very stable branch of the insurance industry Premiums tend to increase each year at a moderate rate This line of insurance is not as sensitive to losses as personal auto However, occasionally events occur that dramatically impact homeowners’ insurance, as in 1992 Hurrican Andrew: Over $19 billion in losses Hurricane Iniki quickly followed Hailstorms in Texas and Oklahoma: $450 million in damages Los Angeles riotL: $500 million in damages Losses combined push the combined ratio of (losses plus expenses) ÷ premiums from an average of 111 to 156 Dozens of insurers went bankrupt Introduction The homeowners’ sector still not fully recovered from the setback For all practical purposes, homeowners’ insurance is a necessity You cannot obtain a mortgage to purchase a home unless you can prove that you have a valid homeowner’s policy You must maintain that policy or a similar one Homeowners in southern Florida and Hawaii have had availability problems Florida: new laws passed to make insurance available in coastal areas Introduction Table 15-1 shows 10 most costly catastrophes from insured losse