Unit 7: Consumer SkillsSection 2: Insurance

I CAN:Explain what types of insurance are available

and why I need themDefine the terms associated insurance

Types of insuranceCar:

Full vs. liability: Full covers the damage you do to others in an accident (property and bodily injury) AND the value of your car and your injuries. Liability only covers OTHERS.

Home: Covers your home and possessionsRenters: Covers your possessionsHealth: duhDisability: covers you if you have a temporary

issue that prevents you from work (EX: cancer, broken bones, etc…)

The terms…Policy: your policy is the contract that says

exactly what will be covered and paid for by your insurance company

Premium: this is the price you pay for your coverage. This is determined based on your risk (a person who has had several car accidents will pay more than someone with no accidents in 20 years b/c they have more risk)

Coordination of Benefits: determines who pays first when a person has more than 1 policy (usually, in health insurance)

Peril: a portion of home insurance that provides for specific hazardous events: flood, tornado, fire, etcImportant b/c not all perils are covered. If you live in

a flood plane, you CAN’T get flood coverageProperty Coverage: Insurance doesn’t

automatically cover everything you own. You often have to prove you own(ed) it and prove its value People often take pictures of their furnished homes

and put them in a safe deposit box as evidence.Rider: an “extra” coverage on your policy (you

have to pay extra to get it). Someone might get a rider to cover a very expensive sound system in their car.

CAN I?Explain what types of insurance are available

and why I need themDefine the terms associated insurance

I can prove this by completing activities: 7.1- RAFT