Chapter $1$: Managing Personal Risks

The Smith family, which consists of two parents and a one$-$year$-$old son, recently moved into a single home that includes a two$-$car garage, a garden shed, and a swimming pool. Their parents and their insurance agent counseled them that this is an important event in their lives and that, as new homeowners, they should make a conscious effort to use a structured risk management process to assess their loss exposures and develop and implement a risk management plan to manage them. They decide to undertake this project.