Republic of the Philippines

Surigao del Sur State University

Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph

COLLEGE OF BUSINESS AND MANAGEMENT

PERSONAL FINANCE
PRE - FINAL COVERAGE
First Semester A.Y. 2021-2022

LECTURE NOTES
/INSTRUCTIONAL MATERIAL 6

PROTECTING YOUR PESRONAL AND PROPERTY AND PROPERTY RESOURCES

TITLE: PROPERTY AND LIABILITY INSURANCE

INTRODUCTION

This chapter define the concept of insurance liability and property damage coverage. Property damage liability
coverage is part of a car insurance policy. It helps pay to repair damage you cause to another person's vehicle or
property. It typically helps cover the cost of repairs if you are at fault for a car accident that damages another
vehicle or property such as a fence or building front. Property damage liability coverage is required by law.
Property damage liability coverage usually does not cover damage to your own vehicle. You may want to
consider other coverages, such as collision coverage, to help cover the cost to repair your own vehicle.
https://www.allstate.com/tr/car-insurance/property-damage-liability-insurance.aspx

Liability Insurance refers to an insurance product that provides an insured party with protection against claims
resulting from injuries and damage to other people or property. Liability insurance is often required for
automotive insurance policies, product manufacturers, and anyone who practices medicine or law.

INTENDED LEARNING OUTCOMES

After reading and analyzing, students should be able to:

1. Understand and appreciate of how insurance finances losses and reduces uncertainty and the differences
among property risks, and life and health risk.
2. Know and identify the potential solutions to risk exposure; and the importance of property and liability
insurance.
3. Identify and know the importance of insuring home and the personal liability components.

WHAT IS INSURANCE
- Is a protection against the possible financial loss.

Insurance Company or Insurer is a risk-sharing firm that agrees to assume financial responsibility for losses that
may result from in insured risk.

Importance of Property and Liability Insurance

- Most people use insurance to reduce their chances of economic loss from these risks. The price pay for
home and automobile viewed as an investment in financial protection against the losses, Property and
Liability insurance offer protection from financial losses that may arise from a wide variety of situations.

BASIC TYPES OF RISKS

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 1. Property Risks include possible damage to or loss of your property, plus losses arising from damage to
property.
2. Liability Risks are situation that could forces you to depend yourself in court and to pay large sums to
others.
3. Life and Health Risks involve the financial impact of death and loss of health, including taxes, medical
and financial expenses and income loss.

Potential Solutions to Risks Exposure

1. Insurance – transferring the risk to an insurance company.

2. Retention – taking a chance on covering the loss yourself
3. Loss control – attempting to reduce the possibility of the loss

INSUARNCE POLICY AND TERMINLOGIES

Insurance Policy is a contract, between your ( the insured) and a financial institutions ( the insurer) in which you
promise to pay a certain amount of money per period in return of the insurer’s promise to pay for certain covered
losses if they occur during policy period.

The principle of indemnity is the principle that insurance will only reimburse the policyholder for actual losses.

Liability is legal responsibility for the financial cost of another person’s losses or injuries.

Strict liability is present when a person is held responsible for intentional or unintentional actions.

Vicarious Liability occurs when a person is held responsible for the actions of another person.

Automobile Insurance

Categories:
1. Bodily Injury Liability covers the risks of financial loss due to legal expenses, medical expenses , lost
of wages and other expenses associated.
2. Medical Payments covers the costs of health care for people who where injured in your automobile,
including yourself.
Uninsured Motorist’s Protection covers the cost of injuries to you and your family.

INSURING YOUR HOME

1. Homeowner’s Insurance Coverage it is a homeowner’s policy which provides coverage for the building
and other structures, additional living expenses, personal property, personal liability and related coverage
and specialized coverage.
2. Building and other Structures protection against financial loss due to damage or destruction to a house
or other structure.
3. Additional living expenses coverage pays for the cost of living in a temporary location while your home
is being repaired

Personal Liability and Related Coverage

The personal liability components of a home owners policy protects you financial losses resulting from legal
action or claims against you or family members due to damages to the property of others.

VALUATION/ASSESSMENT

The performance of the students will be assessed using the following:

1. Graded Oral Discussion
2. Exercises
3. Synthesis/Reflection output

SUMMARY
Property insurance is a form of insurance which protects a building and its contents. All motor vehicles have a
liability insurance to cover injury to other people or damage to their property. Homeowners insurance covers the
homeand possession. The personal liability coverage in a homeowner’s policy protects you from loss resulting
from any injuries that may occur on the property. (3G E-LEARNING; 2018)
PERSONAL FINANCE (AY 2021-2022)

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References:
1. 3G E-LEARNING LLC, ( 2018) Managing Personal Finance
2. 3G E-LEARNING; (2018); Entrepreneurial Mind
3. Flores, M.F.; ( 2016) Personal Financial Management, MINSHAPERS CO., INC. Manila
4. 3GLEARNING LLC ( 2015) Investment and Financial Management
5. Bautista, Precila R. (2018), Simplified Approach to Financial Management (theories and Practices)
6. Medina, R.G. ( 2014); Entrepreneurship and Small Business Management; 3 rd Edition Rex Bookstore;
Quezon City
7. Internet/Google related Income and Asset Protection

Republic of the Philippines

Surigao del Sur State University
Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph

COLLEGE OF BUSINESS AND MANAGEMENT

PERSONAL FINANCE (AY 2021-2022)

Page 3 of 13
 PERSONAL FINANCE
FINAL COVERAGE
First Semester A.Y. 2021-2022
/INSTRUCTIONAL MATERIAL 7

PROTECTING YOUR PESRONAL AND PROPERTY AND PROPERTY RESOURCES

TITLE: FINANCING HEALTH AND CARE LIABILITY

References:
8. 3G E-LEARNING LLC, ( 2018) Managing Personal Finance
9. Flores, M.F.; ( 2016) Personal Financial Management, MINSHAPERS CO., INC. Manila
10. 3GLEARNING LLC ( 2015) Investment and Financial Management
11. Bautista, Precila R. (2018), Simplified Approach to Financial Management (theories and Practices)
12. Medina, R.G. ( 2014); Entrepreneurship and Small Business Management; 3 rd Edition Rex Bookstore;
Quezon City
13. Internet/Google related of financing health care liability

Republic of the Philippines

PERSONAL FINANCE (AY 2021-2022)

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 Surigao del Sur State University
Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph

COLLEGE OF BUSINESS AND MANAGEMENT

PERSONAL FINANCE
FINAL COVERAGE
First Semester A.Y. 2021-2022

LECTURE NOTES
/INSTRUCTIONAL MATERIAL 8

TITLE: MANAGING YOUR INVESTMNET ASSETS AND RETIREMENT AND ESTATE PLANNING

References:
14. 3G E-LEARNING LLC, ( 2018) Managing Personal Finance
15. Flores, M.F.; ( 2016) Personal Financial Management, MINSHAPERS CO., INC. Manila
16. 3GLEARNING LLC ( 2015) Investment and Financial Management
17. Bautista, Precila R. (2018), Simplified Approach to Financial Management (theories and Practices)
18. Medina, R.G. ( 2014); Entrepreneurship and Small Business Management; 3 rd Edition Rex Bookstore;
Quezon City
19. Internet/Google related in managing your investment assets and retirement and estate planning

PERSONAL FINANCE (AY 2021-2022)

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