Professional Documents
Culture Documents
RM Individual Assignment
RM Individual Assignment
AND DEVELOPEMENT
DEPARTMENT OF ACCOUNTING AND
FINANCE
NAME ID NUMBER
ENDE KELIKAY MOGES ECSU1802190
Homeowners
Homeowner's insurance is a form of property insurance that covers losses and damages to an
individual's house and to assets in the home. Homeowner’s insurance also provides liability
coverage against accidents in the home or on the property.
Flood
Flood insurance denotes the specific insurance coverage against property loss from flooding.
To determine risk factors for specific properties, insurers will often refer to topographical
maps that denote lowlands, floodplains and floodways’ that are susceptible to flooding.
Topographic maps are detailed, accurate graphic representations of features that appear on
the Earth's surface. These features include: cultural: roads, buildings, urban development,
railways, airports, names of places and geographic features, A topographic map shows how
the ground is shaped and provides a way to calculate the height of the features on the map.
Earthquake
Earthquake insurance is a form of property insurance that pays the policyholder in the event
of an earthquake that causes damage to the property.
A peril is the cause of the loss. A specific risk or cause of loss covered by an insurance
policy, such as a fire, windstorm, flood, or theft a named-peril policy covers the
policyholder only for the risks named in the policy in contrast to an all-risk policy, which
covers all causes of loss except those specifically excluded.
Open perils (special form)
Open perils cover all the causes of loss not specifically excluded in the policy. Common
exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear
incidents, acts of terrorism, and war.
Instead of providing list of what is covered you get a short list of what is not. If your loss is
not on the list, you’re covered.
Named perils (broad form)
Named perils require the actual cause of loss to be listed in the policy for insurance to be
provided. The more common named perils include such damage-causing events as fire,
lightning, explosion, and theft.
A good real life example illustrating the difference between Named Perils and Open Perils
happened to my mother: She returned home from grocery shopping one day and noticed the
diamond in her engagement ring was gone. It hadn't been stolen, hadn't been destroyed by
fire, hadn't been vandalized, or any of the other "named" perils. But it was gone, and she
wanted it replaced. Since my father was in the insurance business, he had purchased "open"
perils coverage on the ring separately, through a valuable items policy. The diamond was
replaced with insurance, since there was no exclusion for "stone falling out of setting",
which is what probably happened. You can get the same open perils coverage today on your
contents. Overall, Open Perils provides protection to you for any reason not specifically
excluded. Named Perils, on the other hand, provides coverage only for those Perils listed, or
specifically named, in the policy.
Replacement cost coverage pays the cost of repairing or replacing your property with like
kind & quality. Replacement cost coverage pays the cost of repairing or replacing your
property with like kind & quality regardless of depreciation or appreciation. Premiums for
this type of coverage are based on replacement cost values, and not based on actual cash
value.
Actual Cash Value
Actual cash value coverage provides for replacement cost minus depreciation. Actual cash
value is the amount equal to the replacement cost minus depreciation of a damaged or stolen
property at the time of the loss. It is the actual value for which the property could be sold,
which is always less than what it would cost to replace it.
insured your home for 200, 000 extended replacement cost may provide you 125% this
gives you 250 000
Property insurance can also be divided into two groups:
Individual and corporate insurance
They provide the customers with:
auto insurance,
home insurance,
travel insurance,
marine, aviation and railway insurance,
industrial insurance,
agricultural insurance,
public liability insurance,
Financial insurance.
Auto insurance is addressed to individuals and corporations and offers the following
products: comprehensive car insurance,
Public liability insurance: - civil liability of the owner or the driver of the vehicle for
damages to life, health and property of third parties,
Assistance insurance: - covering towing and the costs of totalling, returning from the place
of accident, medical assistance, hospitalization and of the injured transport.
Home insurance, also homeowner’s insurance, covers damages such as: damage to the
building, to the household property, windowpane breakage, burglary, theft, impossibility of
living as a result of a fire or flood etc. as well as personal liability insurance (i.e. flooding
neighbour’s flat).
Travel insurance offer is usually very wide. Its scope includes: loss or damage to luggage,
consequence of the occurrence of accident, medical costs or third-party insurance.
Marine insurance covers: boat Casco, cargo insurance — damages in purchased or
delivered goods, freight insurance — cost of transporting the load, public liability insurance
ship-owners liability.
Aviation insurance is similar to the marine one and covers: carrier's passengers liability for
damage on the ground as well as liability of aircraft manufacturers, airports and airport
operators.
Railway insurance is offered to the carriers and infrastructure owners in the event of
damage to the users’ property of their own property and personal damages.
Industrial insurance is partly similar to the home insurance (natural disasters, theft, public
liability), but also includes protection against sabotage, industry-related risks or equipment
failures.
Agricultural insurance covers damages being the result of forces of nature (drought, flood,
hail), and losses in crops and livestock as well as obligatory public liability and buildings
insurance