In the U.S. Latex: 97\% of homeowners have homeowners insurance. The average premium is Latex: \$1083 per year. Homeowners insurance is not required by law but it is usually required by mortgage companies. The average claim is$8787, with wind damage the most common 25%.These exclude hurricanes and severe storms. Theft, at 6%, is the least common. Fire is the most costly claim. There is an average of Latex: 355{,}400
355
,
400
house fires per year, causing Latex: \$6.5 billion in damage.

Only Latex: 37\% of renters have renters insurance. The average premium is Latex: \$144 per year. Renters insurance insures just the items inside the building, not the building itself.

The average cost of auto insurance is Latex: \$1500 per year. The average insurance claim is Latex: \$4100\textsf{.} Even though auto insurance is required by law, Latex: 13\% of drivers are uninsured.


Use this data to discuss the pros and cons of auto and homeowners/renters insurance.
In addition, make sure the following questions are covered in the answer.

What would happen if a homeowner had no homeowners insurance?
What would happen if a renter had no renters insurance?
Why do mortgage companies require homeowners insurance?
How could an automobile owner benefit from purchasing auto insurance?