From all the types of insurance coverage policies that exist in today’s market, how important is property and casualty insurance? In order to answer that question, you have to first understand what property and casualty insurance actually is and the type of losses a typical insurance agency provides coverage for. Property and casualty insurance can most often be defined as a contract in which the insurance company agrees to pay for any personal or property damages in exchange for an agreed upon monthly fee.
Coverage Under Property and Casualty Insurance
Property and casualty insurance essentially provide coverage on homes, cars and businesses. More specifically, property insurance provides protection against potential risks to a person/business’s property, which can include damages incurred through fires, floods or burglaries. Casualty insurance plans are typically meant to cover losses which are a direct result of unforeseen accidents.
Types of Property and Casualty Insurance Plans
There are several different types of insurance plans that fall under the property and casualty insurance “umbrella.” For example, some of the specialized forms of insurance that are directly associated with property insurance include fire insurance, flood insurance, earthquake insurance, home insurance and personal property insurance. As for casualty insurance, the types of insurance that can most often be related are auto liability insurance for car accidents or marine insurance for shipwrecks and losses at sea.
Commercial property insurance is one of the most common types of property insurance and provides coverage for all business-related tangible and intangible assets including money, accounting records, inventory, furniture and other related supplies. Most commercial property insurance plans provide coverage to the insured party for losses resulting from fires, theft and other related disasters.
Naturally, there are some preventative measures that you can take in order to get the most out of your property insurance policy. For instance, you can always employ security personnel for the purpose of managing any security issues and you can also have a sprinkler system installed in order to control fire related incidents. As for specific premium and insurance rates, every insurance agency charges a different amount. However, you can typically obtain the rates for multiple companies online in order to determine which insurance agency is offering the best deal.
Rental Property Insurance
Another popular form of property insurance is known as rental property insurance. While most landlords have insurance on the property they rent out, it’s also important for the tenants who are renting to have renter’s insurance for the purpose of protecting their property. Renter’s insurance usually covers items that can be found inside an individual’s rented property. This particular type of insurance is extremely essential if you are someone who is renting property because the landlord’s insurance provides coverage for damages to his/her building only, which leaves the valuables inside your apartment at risk. You may also find it interesting to know that if something were to happen to your landlord’s building and you were left without a place to stay, renter’s insurance would cover the costs associated with your temporary living accommodations.
Having renter’s insurance is especially necessary if the property you are renting is situated in a high crime area, as it covers any personal items that are stolen from your property. Similar to homeowner’s insurance, you are also required to pay a monthly or yearly premium in addition to a deductible for renter’s insurance. Additionally, the general rule of thumb usually states that the higher the deductible, the lower your monthly payments will be.
The importance of property and casualty insurance differs from individual to individual, however, you should keep in mind that purchasing property and casualty insurance to protect your property against losses and unforeseen damages can save you a great deal of unnecessary grief and, not to mention, financial headache.