InfoGuides: *Personal Financial Literacy Resource Guide*: Chapter 8: Home and Automobile Insurance

Chapter 8 Introduction

Adequate financial protection from risks is a vital component of financial planning. This chapter starts with an introduction to insurance and covers the fundamental aspects of home and auto insurance. Discussed are coverage available to homeowners and renters, along with information on the types of policies and the factors that affect the cost of home insurance. The second major aspect of the chapter involves a presentation of the importance, types of coverage, and cost factors of automobile insurance.

LO 8.1: Identify types of risks and risk management methods, and develop a risk management plan

ready.gov
Info on Emergency Preparedness
Brought to you by the US Federal Government
National Hurricane Preparedness
Brought to you by the National Weather Service
In a Disaster (NC Department of Insurance)
North Carolina is at a high risk for a variety of natural disasters, including hurricanes, tornadoes, winter storms, floods, wildfires, earthquakes, and mudslides. The North Carolina Department of Insurance encourages proper planning so that citizens are in a better position to protect their families and to recover from a natural disaster. Are you prepared? Click on the link above to find out.
Federal Emergency Management Agency (FEMA)
Info regarding getting assistance after a disaster.

LO 8.2: Assess the insurance coverage and policy types available to homeowners and renters

Renters Insurance (NC Department of Insurance)
Homeowners Insurance (NC Department of Insurance)
Homeowners' Insurance Optional Coverage (NC Department of Insurance)
Click on the link above to see some of the optional types of Endorsements for a Homeowners' Policy.
Umbrella Insurance (NC Department of Insurance)
Excess and umbrella liability policies are but a few of the many terms used to describe the various coverage formats providing catastrophic loss protection when underlying insurance is inadequate or lacking. These are liability coverages that pick up when the underlying coverage has been exhausted due to a severe claim. They do not provide primary coverage.
Flood Insurance (NC Department of Insurance)
Homeowners insurance policies DO NOT cover flood damage. If you live in a flood plain, near a river or if you live near the coast, you should consider purchasing flood insurance for your home.
Flood Factor
Do you need flood insurance? Click on the link above to Find Your Home's Flood Factor.
Earthquake Coverage (NC Department of Insurance)
A home is usually a person’s biggest asset. Earthquakes can happen in all 50 states and U.S. territories. Earthquakes can cause a great deal of damage that isn't covered under your Homeowner's, Renter's, or Condominium policy. However, some comprehensive Mobile Homeowner's policies do cover earth movement.
US Geological Survey (USGS 2.5+ Earthquakes)
Earthquakes are happening around the globe everyday. Watch the reports come in real time.
Wind storm and Hail Coverage (NC Department of Insurance)
Depending on where you live and the insurance company's underwriting guidelines, windstorm and hail coverage may be excluded from the primary residential property insurance policy.