8.2 Homeowner & Renter Insurance

8.2
Homeowner & Renter Insurance

Did you know that you can get insurance to cover all the stuff you own inside a rented apartment? It’s called renters insurance! But, one reason people give for skipping renters insurance is, “I don’t have that much stuff. And none of it’s very nice.” Click here to “customize” your hypothetical first apartment on the All State insurance website.

Then, answer the following 4 questions on slides 3-6:

Warm-Up

Open Ended

Pretend Apartment: Question #1

How much did the website estimate it would cost to replace all the items in your apartment? 

Open Ended

Pretend Apartment: Question #2

How much does the interactive assume your renters insurance policy will cost per month? Does this surprise you? Explain.

Open Ended

Pretend Apartment: Question #3

How much does the interactive assume your renters insurance policy will cost per month? Does this surprise you? Explain.

Open Ended

Pretend Apartment: Question #4

Do you think you will get renter’s insurance as a young adult? Why or why not?

Video: Insurance 101

As you saw in the INTRO, renters insurance can save you a lot of money if you need to replace the items in your apartment after a disaster. Watch this video to learn more about how renters insurance works and why it's valuable.

Use this video for the 4 questions on slides 8-11.

Multiple Choice

Insurance 101 Video: Question #1

Why would someone want to have renters insurance if their building owner has insurance?

• The building owner's insurance only covers liability. Renters insurance will cover damage to the exterior and structure of the building.

• The building owner's insurance only covers the building structure. Renters insurance covers your personal property.

• There is no need to get renters insurance if the building owner already has an insurance policy

• By law, you must have two types of insurance: landlord insurance and renters insurance

Multiple Choice

Insurance 101 Video: Question #2

The coverage under renters insurance will cover the costs of the following items EXCEPT:

• Your personal belongings

• The damage to the building

• Hotel you have to stay at until your apartment can be repaired

• Small alterations to the property you made at your own expense

Multiple Choice

Insurance 101 Video: Question #3

What is the purpose of liability coverage on a renters insurance policy?

• It covers only damage to the exterior of the rental unit

• It covers your medical bills if you are injured on the property

• It covers unintended damage and accidents in the rental

• Liability coverage is not available on a renters insurance policy, only on a landlord policy

Multiple Choice

Insurance 101 Video: Question #4

There is no need for a college student to have a renters insurance policy.

• TRUE

• FALSE

Video: Do I Need Renters insurance in College?

While the video earlier in this lesson touched on whether renters insurance is necessary for college students, this video goes into a little more depth on the topic.

Use this video for the 5 questions on slides 13-17.

Multiple Choice

Renters Insurance in College? Video: Question #1

Jacques is also headed off to college, will be living in the dorm, and his parents have homeowners insurance. He’s thinking, “I don’t know for sure whether their policy will cover me or what the coverage limits will be, so I’ll just buy my own renters policy too.” What would you tell him?

• That's a good idea! Better to be safe than sorry

• You should read the fine print of your parents' policy. You might be covered in a dorm.

Multiple Choice

Renters Insurance in College? Video: Question #2

You are less likely to be covered on your parents' policy if you live off campus.

• True

• False

Multiple Choice

Renters Insurance in College? Video: Question #3

Sue is headed off to college, will be living in the dorm, and her parents have homeowners insurance. She figures, “I won’t need renters insurance. My parents’ policy will cover me.” What would you tell her?

• You will definitely not be covered. Better buy your own insurance

• You may not be covered for enough (or any at all) depending on your parents' policy. You better check it out and read the fine print

• You're right! Nothing to worry about. It will cover you!

Multiple Choice

Renters Insurance in College? Video: Question #

You have renter's insurance. Your computer was stolen from your dorm room.

• Too bad. Theft does not count for a claim

• Good! You can make a claim.

Multiple Choice

Renters Insurance in College? Video: Question #5

You made your claim for your stolen computer worth 1,200 and you have a $500 deductible. You much will you be able to collect on the claim?

• $500

• $700

• 
  

  $1,200

Video: Homeowners Insurance 101

From the previous video, you learned that a homeowners insurance policy might cover items a college student takes with them to the dorm. What else does homeowners insurance cover?

Use this video for the question on slide 19.

Drag and Drop

Homeowners Insurance 101 Video: Question #1

For each of the 5 coverage areas of a standard homeowners insurance policy, match what they cover:

Dwelling -- ​

Placeholder

Personal Property -- ​

Placeholder

Loss of Use -- ​

Placeholder

Personal Liability –- ​

Placeholder

Medical Payments -- ​ ​

Placeholder

Drag these tiles and drop them in the correct blank above

The home itself

Personal items inside the home (clothes, TV, etc)

Cost of living elsewhere if home isn't possible

Lawsuits for injuries or damage to someone else

Payment for someone injured on your property ( NO

Renters Insurance Assignment

With all insurance policies, it’s important to not only understand the fundamentals of how they work but also to dig into the specific details of your policy agreement. It’s there that you’ll find out exactly what is and is not covered and for how much. Work with a partner to complete the rest of the Quizizz lesson. There are hints on each slide that tell you what page number to reference when looking for the answer. Do NOT write on the packet!

Use the remaining questions

Multiple Choice

Using the packet provided for you on your desk, answer the following question. (Hint: Page 5)

If you purchase the renters insurance policy described above, you bring a suitcase of clothing and other general items with you on a 3-week stay with your aunt in Panama, and that suitcase is stolen while abroad, how much property coverage will your policy cover?

• $0, because the items were not AT your apartment during the theft

• $0, because you were outside the country

• 10% of your coverage limit, because the items were not AT your apartment during the theft

• 100% of your coverage limit, because your policy works anywhere in the world

Multiple Choice

Using the packet provided for you on your desk, answer the following question. (Hint: pg 5)

Megan and her brother Marco have a side business where they shop at flea markets, garage sales, and estate sales to find desirable items, fix them up, and then resell them online for much higher prices. Megan’s apartment is broken into and items valued at $2500 are stolen. How much would her renters insurance cover?

• $0, because she’d need small business insurance to cover those losses

• $200

• $1000

• $2500

Multiple Choice

Using the packet provided for you on your desk, answer the following question. (Hint: pg 5-6)

1. Which of the following personal property items has the HIGHEST specific limitation on coverage?

• A prized coin collection

• Jewelry, watches, and precious stones or metals

• A canoe you’re storing at the rental property

• An antique rug

Multiple Choice

Using the packet provided for you on your desk, answer the following question. (Hint: pg 6)

Which of the following rain-related losses WOULD be covered under this renters insurance policy?

• Your laptop is ruined because you left your window open during a moderate rain shower

• Your mattress is ruined because part of the apartment’s roof blew off during a major rainstorm, creating a stream of water landing directly on your bed

• Your carpet is ruined because your roommate negligently left her wet boots, umbrella, and raincoat sitting in a pile on the rug all afternoon

• You lose a day’s wages because a horrible rainstorm makes it impossible to get to your job

Multiple Choice

Using the packet provided for you on your desk, answer the following question. (Hint: pg 7)

Keisha is renting a one-bedroom apartment but allows her best friend to move in and pay $200 per month to sleep on the couch for the summer while she is between jobs. The apartment is burglarized one afternoon when they are both out, and the thief steals both of their laptops, Keisha’s TV, and her best friend’s wireless headphones. What will the insurance company cover?

• None of these items

• Keisha’s laptop and TV only

• Keisha’s laptop and TV and 10% of the cost of her friend’s laptop and headphones

• Keisha’s laptop and TV and her friend’s laptop and headphones

Multiple Choice

Using the packet provided for you on your desk, answer the following question. (Hint: pg 7-8)

Which semi-common emergency event is NOT covered by this insurance policy?

• Flood

• Fire

• Riots and looting

• Explosions

Multiple Choice

Assume this policy has a deductible of $1,000 and a coverage limit of $15,000. If there are personal property losses of $7,000 for a covered event, which best describes how much both parties pay?

• Insured person pays $0; insurance company pays $7,000

• Insured person pays $1,000; insurance company pays $6,000

• Insured person pays $1,000; insurance company pays $7,000

• Insured person pays $1,000; insurance company pays $15,000

Multiple Choice

Using the packet provided for you on your desk, answer the following question. (Hint: pg 11)

A tenant with this insurance policy suffers a substantial loss due to lightning strike and an apartment fire that erupts as a result of that storm. The tenant should take each of the following steps as soon as possible EXCEPT…

• Call the insurance company and report the loss and damages

• Sign up for additional renters insurance, as this coverage has now been “used up” and will expire

• Divide property into “damaged” and “undamaged” categories and submit a thorough list of everything “damaged”

• Provide receipts, when available, for damaged items, costs associated with living elsewhere, and costs of doing any self-repair on the rental property

Multiple Choice

Using the packet provided for you on your desk, answer the following question. (Hint: pg 11)

The insured person must prepare a report, outlining full details of the loss including all items destroyed, damaged, or stolen and their actual cash value, within...

• 24 hours

• 1 week

• 60 days

• 180 days

Multiple Choice

Using the packet provided for you on your desk, answer the following question. (Hint: pg 13)

What happens if the insured tenant and the insurance company fail to agree on the amount of loss?

• Either the tenant or the company can request an appraisal, so that an impartial third party determines the amount of loss

• The insurance policy becomes null and void

• The insurance company is forced to pay the current online market price for the item

• The landlord or owner of the building must make up the difference in the disputed value

Dropdown

Pretend your homeowners policy has a premium of $150, a deductible of $5,000, and a limit of $300,000. Your home suffers $170,000 in damages.  

How much will you pay for the damages? ​

Select answer

How much will your insurance pay? ​​ ​

Select answer