Property insurance can cover your land, people or provide you with valuable liability against lawsuits. What are the different types of property insurance? What do the different property insurance policies cover?
What is Property Insurance?
Generally, property insurance will cover personal belongings, furniture, equipment, machinery and so forth. It can cover residential, commercial or industrial facilities. Homeowner’s insurance is a sub-category of property insurance that protects your house, the people living there and any visitors.
Land ownership includes the duty to provide a safe environment for any people who visit, reside or work thereon. This includes protection against slip and fall lawsuits. Property insurance can pay legal costs if there is any personal liability after someone is injured.
How Property Insurance Works
Insurance spreads out risk to an entire industry that keeps numerous statistics on the chances of different hazards occurring. This ensures that individuals and businesses do not go bankrupt after one calamity. You pay insurance premiums so that the insurance company will reimburse you after a claim.
After a thunderstorm, burglary or fire, the insurance policy holder will make a claim to his insurance company. The insurance company will send out an insurance claim adjuster to determine the extent of the damage. Should the insurance adjuster approve your claim, the insurance company will reimburse you for your loss.
Different Types of Property Insurance
You can purchase property insurance for your home or business. There are also two major types of insurance: 1. Comprehensive and 2. Named Perils. Each has its advantages and disadvantages.
Comprehensive (also known as an umbrella policy) is meant to cover any danger that you could face. This policy might be more expensive, but cover more.
The Named Perils policy only covers exactly what is listed (i.e. wind, fire and burglary). This policy will be cheaper, but covers less.
When you face any hazard, you might be emotionally stressed out. After a burglary, you might feel threatened, you might be worried about how you are going to pay for repairs. With property insurance, any damage is covered.
This is also very important with respect to property liability. If someone slips and falls on an icy sidewalk, you might be faced with a lawsuit. The best property insurance can pay for legal fees, attorney representation and penalties. The insurance company might even represent you in court.