With and Without Insurance - The Need for Home Insurance

Activity Description

In this engaging and informative worksheet, students will learn about the importance of insurance through a detailed simulation involving two homeowners, Alice and Bob. Alice has home insurance, while Bob does not. Over a simulated period of 10 years, students will uncover a series of events that impact the houses of both Alice and Bob.

Objectives:

Simulate Real-Life Scenarios: Through a 10-year simulation, students will witness various events affecting the homes of Alice and Bob, such as natural disasters, accidents, and other unforeseen damages.

Cost Analysis: Students will calculate the costs incurred by both homeowners, comparing the insurance premiums paid by Alice with the out-of-pocket expenses paid by Bob for damages.

Evaluate Financial Impact: By the end of the worksheet, students will understand how insurance helped Alice avoid substantial financial losses, while Bob had to bear significant costs for repairs and damages.

Learning Objective

This simulation-based activity is designed to help students grasp the significance of insurance in financial planning and risk management. By simulating various life events over a span of ten years for two individuals, one with insurance coverage and another without, students will gain insights into how insurance can provide financial protection and security during unexpected circumstances. 

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