Introduction to Business
Chapter 34:
Property Insurance
Chapter Contd.
Lesson 2: The Homeowner’s Policy p. 553-555
Ms. Asma Nadeem
CLASSROOM RULES!
R- Respect
U- Use time
effectively.
L- listen attentively.
E- engage in active
learning.
S- strive for
excellence.
Activity
Describe the Picture
2–
Mi
ns
Learning Objectives
1. Define homeowner’s policy
2. Examine the types of Homeowners policies
3. Analyze the purpose of riders/ floaters
Essential Question: What types of coverages we can take in
homeowners' policy?
Key words
• Property insurance • Extended coverage
• Real property • Homeowner's policy
• Personal property • Eleven perils
• Renters’ insurance • Rider
• Standard fire policy • Replacement value
The Homeowner’s Policy
Many insurance companies offer a combination policy with different kinds of home
protection called a homeowner’s policy.
A homeowners policy covers damage to property and personal property, additional living
expenses if a home is destroyed, and liability protection.
Homeowner policies provide protection against losses from the 11 perils. These 11 perils
are most common causes of property damage they include:
1. Fire / lightning 5. Riots 9. Explosion
2. Smoke 6. Theft 10.Aircraft
3. Windstorm 7. vandalism 11.Smoke
4. Vehicle 8. breaking glass
Activity:
Think-Pair-Share - Oral Discussion – 2 Mins
Describe what type of protection is covered by all home
owner’s policies?
Types of Homeowner’s Policy
1. Basic Form
2. Board Form
3. Special Form
4. Renter’s Form
5. Comprehensive Form/ All-Risks policy
6. Condominium Owner’s Form
Types of Homeowner’s Policy
1. Basic Form: It is least expensive policy, provides less coverage than some of the other
forms. This policy protects the real property and personal property from 11 perils.
It also gives the coverage of liability protection for homeowner, if someone is
injured on the insured property. It also covers the Additional living expenses if
you are temporarily displaced because of damage to your home.
2. Board Form: This policy also covers damage from falling objects, collapse of a building, ice
and snow, steam, water, and electrical systems.
3. Special Form: provides maximum protection for the house itself, with less coverage for
contents or personal property.
Types of Homeowner’s Policy
4. Renter’s Form: covers the personal property of the renter and also includes the coverage
of additional living expenses. The policy holder does not own the building/ house.
5. Comprehensive Form/ All-Risks policy: It insures a building and its contents with
maximum coverage. It is the most expensive insurance policy.
6. Condominium Owner’s Form: covers personal property and anything else inside the unit.
The building itself is covered under a separate policy.
Activity
Pair Work- Notebook – 3 Mins
Examine the types of Homeowners policies.
Riders/ Floaters
In a home insurance policy, riders (also called floaters) are optional add-ons that provide
extra coverage beyond the standard policy. They allow homeowners to customize their
insurance by covering specific items, situations, or risks that are not included in the basic
policy.
All Homeowners policies do not cover loss from floods, earth quakes, landslides, acts of war,
or nuclear hazards. However, riders can be added for them.
Riders/ Floaters
Common Types of Home Insurance Riders:
1.Jewelry and Valuables Rider : jewelry, art, antiques,
and collectibles.
2.Flood or Earthquake Rider – Adds coverage for
natural disasters.
3.Home Business Rider – Provides coverage for
business equipment and liability if you run a business
from home.
4.Sewer Backup Rider – Covers damage caused by
sewage or drainage system backups.
The Homeowner’s Policies
Activity
Group Work- Worksheet – 3 Mins
Ayesha and her family recently moved into a home near a river. While purchasing home insurance, she
reviewed her policy and noticed that certain natural disasters, like floods and earthquakes, were not covered
under the standard plan. She decided not to add any additional riders to her policy.
A few months later, a severe storm caused heavy rainfall, leading to flooding in her basement. The water
damaged her furniture, appliances, and personal belongings. Additionally, the excess moisture weakened the
foundation of her home, leading to structural cracks. To make matters worse, the storm triggered a landslide
that caused further damage to her backyard and fence. When Ayesha filed a claim with her insurance provider,
she was shocked to learn that none of these damages were covered under her standard policy.
Question:
1.What type of riders could Ayesha have added to her homeowner’s insurance policy to protect against these
damages?
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__________________________________________________________________________________________
Task 1: Choose and circle the letter of the correct choice.
What does a homeowner’s policy typically cover?
Individual Work
A) Only damage to the physical structure of the home
B) Only personal property inside the home
C) Damage to property, personal property, additional living expenses, and liability protection
D) Only natural disasters like earthquakes and floods
Task 2: Answer the following question
Which homeowner’s policy provides the most coverage?
____________________________________________________________________________________________________
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Task 3: Critical Thinking:
Explain the coverage of Basic Form of homeowner’s policy?
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Conclusion
