Do you remember the story of the three little pigs? No matter how hard he huffed and puffed, the Big Bad Wolf couldn't blow down the brick house. The problem with hurricanes, is that the wind strength can even damage well-built homes and other pieces of property. Consider the above image. What kind of damage do you think a hurricane can cause? Now click on the image. It will bring you to an article from the Tampa Bay Times about hurricane insurance. What is insurance? (a product that allows people to pay money - a premium - now so that the company will cover any damage in the future). Why would people buy home insurance? What financial risks can occur due to hurricane damage? Based on the information in the image and text, discuss the costs and benefits of insurance. Then, provide a recommendation of insurance for a friend or family member.
SS.8.FL.6.1: Analyze the fact that personal financial risk exists when unexpected events can damage health, income, property, wealth, or future opportunities.
SS.8.FL.6.2: Identify insurance as a product that allows people to pay a fee (called a premium) now to transfer the costs of a potential loss to a third party.
SS.912.FL.6.1: Describe how individuals vary with respect to their willingness to accept risk and why most people are willing to pay a small cost now if it means they can avoid a possible larger loss later.
Deborah Kozdras, Ph.D.