A Case Study On Insurance And Auto Insurance Essay

1298 Words Feb 22nd, 2016 null Page
This case study will attempt to help John and Jane smith find an insurance policy that best suits their needs and wants in regards to home insurance and auto insurance. In order for the house to be properly insured, it is going to have to be insured for the market value of $989, 000. This is because of indemnity, where the insured is returned to the same financial position as before the loss, without making a profit. Overall the coinsurance for a homeowners policy states that there is a requirement of anywhere from 80- 100% of the house to be insured. If more damage is uncured, then the home owners will have to pay for the difference. (Clark, 2010)
Personal property that is within the dwelling is covered up to 60% of the value of the building. Therefore, seeing as how the watch collection and engagement ring are valued at a higher price bracket than the actual insurance will cover, it would be best for them to get extra coverage for these items. It is also important to take into account that there is a limit of $6, 000 when it comes to jewelry and watches and perils. (Clark, 2010) In order to properly insure the items, the insurance company can provide the documents required to fill out as well as how to provide evidence of their existence.
Any external structures on the property will automatically be covered for 10% of the principal value of the dwelling. In order for the entire garage to be covered it will have to be increased to accommodate the total difference to have…

Related Documents