What is Property-Casualty Insurance?
Property and casualty insurance are types of coverage that protect your possessions (such as your home, car, your pets, and other belongings).
These insurance policies also cover liability. This protects you if you are discovered to be legally responsible for an incident that causes injuries or property damage to another person.
Property-Casualty insurance includes homeowners insurance, co-op insurance, condo insurance, HO4 insurance, pet insurance, liability insurance, and car insurance.
Property and Casualty insurance does not include other insurance coverage like life insurance, health, and fire insurance.
Difference between “property” and “casualty” insurance.
Property insurance generally pertains to your personal belongings or the things you own. Meanwhile, casualty insurance covers your legal liability for losses caused by damage to another’s property or injury to another person. This type of coverage is included in the liability coverage volumes of house owners’ and renters’ insurance policies.
On the other hand, casualty insurance is a popular insurance policy for owners of small businesses because it helps protect a company from liabilities if a worker is injured on company property.
What does property-casualty insurance cover?
Property insurance could be defined in different ways depending on the kind of insurance policy you have. In a landlord’s or homeowners insurance policy, for example, your property is known as personal property.
Coverage C is referred to in the policy and extends to your belongings on the occasion of a loss event. Homeowners’ insurance plans also cover the expense of rebuilding your property if it is destroyed due to a covered loss.
If your home becomes uninhabitable, your absence of use insurance will pay for any added expenses you accrue while away from home.
Finally, the “casualty” portion of insurance can help offset your liability for others’ medical bills and legal fees if they are injured on your property and sue you.
Is Casualty the same as liability?
One may be inclined to ask if Casualty is the same as liability. Well, the two words may seem synonymous, but they are pretty different in the insurance field.
Casualty insurance protects against loss to people and property by covering legal risks, accidents, and illnesses. Liability, theft, aviation, workers’ compensation, credit, and title are all significant types of casualty insurance.
Liability insurance contracts could cover liability arising from business running, gross negligence (like malpractice insurance), or property ownership. The insurer consents to pay all sums owed by the insured on the insured’s behalf. The insurer as well agrees to represent the insured in court.
Types of property and Casualty insurance
Property and casualty insurance is divided into seven major categories.
1. Homeowners Insurance
This type of property-casualty insurance covers single-family homes, condos, and co-ops. It can help pay for repairs to your home or personal property caused by “perils” such as lightning, windstorms, fire, smoke, hail, theft, and vandalism. That is the “property” portion of homeowners insurance.
2. Renters’ insurance
Like homeowners insurance helps protect you and your personal belongings against covered perils. However, because renters do not own the homes in which they reside, their property coverage excludes the physical dwelling protected by landlord insurance.
3. Standard homeowners and renters insurance plans
Also, this type of property and casualty insurance plan includes liability insurance that would cover your legal liability for visitors who are accidentally injured at your home and coverage for medical bills they may incur. This is the “casualty” portion of a homeowner’s or renter’s insurance policy.
4. Car insurance
This may cover physical damage to the vehicle and your liability if your actions prove bodily harm or property damage to another person.
5. Pet insurance
This property-casualty insurance plan help pays your furry friends’ medical bills.
6. Flood insurance
The flood insurance, which is not included in standard homeowners or renters policies, offers insurance for flood damage or destruction to your home or personal property. You should get separate flood insurance if you reside in a flood-prone neighborhood.
7. Earthquake insurance
It compensates you for earthquake-related damage. Lemonade provides earthquake insurance to policyholders in California. Remember that a standard Lemonade property owners insurance plan already encompasses losses caused by earthquake-related fires, blasts, theft, and other named perils.
How much property-casualty insurance do I need?
The amount of coverage you’ll require is defined by the type of plan and various factors specific to your situation.
For example, if you are a homeowner, you should ensure that your renovation cost coverage is sufficient to rebuild your home.
Renters and Homeowners should choose a personal property insurance coverage that takes into account the worth of their possessions (furniture, clothing, family heirlooms, and so on), and they may be required to acquire Extra Coverage to protect precious items, such as accessories, high-end art, bicycles, and so on.
How much does property and casualty insurance cost?
The cost of property and casualty insurance is determined by the type of policy you have, where you reside, your deductible, the claims history, more prominent economic trends, and other factors.
Having said that, the average cost of renters insurance in the United States is $15.50 monthly or $186 annually. Meanwhile, the average monthly fee of a homeowners insurance policy is $140, or $1,680 for the whole year.
Lemonade offers renters insurance for as little as $5 per month and homeowners insurance for as little as $25 per month.
You have more question on what Property-Casualty Insurance is all about? Don’t hesitate to hit the comment section.
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