Property and Casualty Insurance
Property and casualty insurance protects you against property loss and legal liability. If your property is damaged (and this could mean your home, your car, or your business premises), or you damage someone else's, having property and casualty insurance means that you don't have to pay out huge amounts of money to cover the damage.
This type of insurance policy covers you, your spouse, relatives who live with you and anyone else who might drive your car. It covers personal injuries, medical payments, and damage to your car. The amount you can expect to pay for this type of insurance coverage will depend on factors like how much your vehicle is worth, how often you drive, how much coverage you want, your sex, age, and even your credit history.
Your homeowners insurance covers your home and its contents, along with the property on which it's located. It covers you for losses that result from property damage, and also indemnifies you against injuries and losses on the part of people who visit your property.
There are various types of homeowners insurance. They are as follows:
- HO 00 02 (Homeowners 2, Broad Form)
This type of insurance provides you with broad coverage on your home and outbuildings, and insures you against loss of use. Specifically, you're insure against windstorms, hail, lightning, volcanic eruption, vandalism, riots, damage by vehicles, explosions, fire, smoke damage, theft, and system failure (frozen plumbing and electrical damage).
- HO 00 03 (Homeowners 3, Special Form)
This is essentially the same, but covers additional eventualities like damage caused by animals who may occupy your property.
- HO 00 04 (Homewoners 4, Contents Broad Form)
This policy is for renters. Even if you don't own a home, you should still be insured. If there should be a fire, or another type of disaster, in your rental home, your landlord's insurance policy won't cover you. When you consider what it can cost to replace furniture and clothing, it simply makes good sense to have renter's insurance.
- HO 00 05 (Homeowners 5, Comprehensive Form)
This provides coverage for your personal property, dwelling, and outbuildings.
- HO 00 06 (Homeowners 6, Unit Owners Form)
This policy is for condo owners, or for people who occupy townhouses or other types of housing. It covers only the dwelling, not the contents.
- HO 00 08 (Homeowners 8, Modified Coverage Form)
If you own an older home, this type of insurance will cover you if the cost of replacing your dwelling exceeds what it's actually worth. It's more expensive than other policies, and that's because insurers are concerned that there may be motivation to destroy the structure and rebuild.
What Isn't Covered?
Under these types of insurance, you will typically not be covered if:
- The damage is due to flooding or sewer backup.
- The damage is due to an earthquake.
- The damage is a result of you neglecting the property
- You have intentionally damaged the structure.
- The damage is due to nuclear explosion or radiation.
Do You Need Property and Casualty Insurance?
You can always run the risk of damage to your property due to fire, weather, vandalism, and other factors. It only makes sense to protect yourself with property and casualty insurance. In terms of personal loss, you should always keep an inventory of your possessions so that if loss or damage occurs, you have an accurate record to give to your insurance provider. And it should be obvious to anyone that, in these litigious times in which we live, protecting oneself against claims from people who may be injured on your property simply makes sense.