Name: Period # R/W:
Personal Finance Home & Renter Insurance
Aim: Why do you need Homeowner / Renter Insurance?
Sections & Questions & Answers
Resources
Try Now: Did you know that you can get insurance to cover all the stuff you own inside a rented
[Link]/res apartment? It’s called renters insurance! But, one reason people give for skipping renters
ources insurance is, “I don’t have that much stuff. And none of it’s very nice.” Use this interactive to
“customize” your hypothetical first apartment. Then, answer the following questions:
1. How much did the website estimate it would cost to replace all the items in your
apartment?
2. How much does the interactive assume your renters insurance policy will cost per
month? Does this surprise you? Explain.
3. Do you think you will get renter’s insurance as a young adult? Why or why not?
Renter Follow along with the EdPuzzle video and complete the answers to each question below.
Insurance 101: (Highlight the correct response)
[Link]/re
nter-insurance
1. Why would someone want to have renters insurance if their building owner has
insurance?
a. The building owner's insurance only covers liability. Renters insurance will
cover damage to the exterior and structure of the building.
b. The building owner's insurance only covers the building structure. Renters
insurance covers your personal property.
c. There is no need to get renters insurance if the building owner already has
an insurance policy
d. By law, you must have two types of insurance: landlord insurance and
renters insurance
2. The coverage under renters insurance will cover the costs of the following
items EXCEPT:
a. Your personal belongings
b. The damage to the building
c. Hotel you have to stay at until your apartment can be repaired
d. Small alterations to the property you made at your own expense
3. What is the purpose of liability coverage on a renters insurance policy?
a. It covers only damage to the exterior of the rental unit
b. It covers your medical bills if you are injured on the property
c. It covers unintended damage and accidents in the rental
d. Liability coverage is not available on a renters insurance policy, only on a
landlord policy
4. There is no need for a college student to have a renters insurance policy.
a. TRUE
b. FALSE
Homeowner 1. For each of the 6 coverage areas of a standard homeowners insurance policy,
Insurance briefly describe what they cover:
101: a. Dwelling --
[Link]/h
omeowners-in
surance b. Other Structures --
c. Personal Property --
d. Loss of Use --
e. Personal Liability –
f. Medical Payments --
2. 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.
a. How much will you pay for the damages?
b. How much will your insurance pay?
3. Unlike most natural disasters, floods and earthquakes are not covered by a
standard homeowners policy. Why might that cause problems for homeowners?
Cost of your Use the link provided. List what factors can influence the cost you pay for homeowner
Insurance: insurance:
[Link]/homeo ●
wner-insuranc
e-costs
Exit Ticket: Sally buys a new home and land for a total of $600,000. Yet, she only insures the home value
of $400,000. Did she make a poor choice? Should she have insured the full $600,000?
Think you can figure it out? Explain!
