Why Is it Important to Get Fire Insurance?

An In forma tive P re s e nta tion for Hig h S c h ool S tude ntsB y J immy He nde rs on a nd Doug G ilbe rt

Case Study- San Diego

QuickTime and aﾪDV/DVCPRO - NTSC decompressor

are needed to see this picture.

Insurance Protects You From Three Kinds of Damage

1. Fire Damage - Structural deterioration, loss of

personal items, etc.

2. Smoke Damage-Staining of interior and exterior of

structure, permanent residual odor, etc.

3. Water Damage-Mold, electrical short-circuits, debris,

etc.

~$6.7 Billion in Home Property Damagein the U.S. In 2005

Financially, the Risks of Fire Damage Merit the Cost of Insurance

19.6%•Likelihood of at least 1 fire as a US homeowner

$18,600•Average cost of damage in US home fires

$33,000•Median post-tax US household income

Would you buy fire

insurance for your home?

YesYes

NoNo

Financially, the Risks of Fire Damage Merit the Cost of Insurance

19.6%•Likelihood of at least 1 fire as a US homeowner

$18,600•Average cost of damage in US home fires

$33,000•Median post-tax US household income

Would you buy fire

insurance for your home?

YesYes

NoNo

$000

...

•$8,100 expected cost over a 30-year horizon•Stable, predictable annual cost

BackBack

$500/yr

Financially, the Risks of Fire Damage Merit the Cost of Insurance

19.6%•Likelihood of at least 1 fire as a US homeowner

$18,600•Average cost of damage in US home fires

$33,000•Median post-tax US household income

Would you buy fire

insurance for your home?

YesYes

NoNo$000

...

•$9,000 expected cost over a 30-year horizon•Cost will all come in one year; could be up to ~50% of annual income!

BackBack

R e fe re nc e s

• All I mages and video court esy of Creat ive Commons