Insurance Case Study For Home Insurance

1298 Words 5 Pages
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.
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Usually the recommended amount is $5 million, but if there is an accident that is serious, John and Jane will have to pay anything above the $1 million. It may be best to consider two way insurance so that there is more coverage for the vehicles. Their daughter will be added to one of their vehicles as an extra driver, this will only increase the policy by a little, but compared to a driver having a car completely to themselves it will be much lower, as she will not have the vehicle on the road as much personally. If she has done drivers training, then it will also decrease the premium. The Ferrari would not be signed onto her because it is considered a summer car, and it would not be considered as one of the main vehicles, compared to if there was a third vehicle, then she would be paying more.
It should also be mentioned that Ontario has a mandatory no-fault insurance. This means that each policy holder gets to collect from their own insurance company regardless who is at fault. This is set in place so that anyone that is injured can receive their claims faster. It also means that if it is your fault then your premium will go up, but you do not have to deal with other insurance
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This will also give the student discounts when it comes to car insurance because they are farther away from home and are less of a liability due to them not using the vehicle as much, which should be recommended to the student. Therefore, John would not have to worry in case something were to happen. This can work as long as the amount does not exceed $7,000. For safety measures it is good to get tenants insurance. It helps with any damages that renter or guest cause, any damage to visitor, damage or loss to their personal property as well as additional living expenses in case the building needs to be repaired. (Clark,

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