Published: November 2015
You may have heard the term property and casualty insurance, but do you know what it means? In short, property insurance and casualty insurance are types of coverage that help protect the stuff you own — your home or car, for example — and also provide liability coverage to help protect you if you're found legally responsible for an accident that causes injuries to another person or damage to another person's belongings.
The following are examples of insurance policies that typically offer property and casualty coverage:
Homeowners insurance may help protect your home and your belongings against covered perils, such as theft or fire. It also typically includes liability coverage, which may help protect you in the event that you're found legally responsible after someone is injured at your home or you cause damage to someone else's property.
Car insurance may help protect your vehicle — and you — in a few different ways, depending on which coverages you choose. Drivers in most states are legally required to have liability coverage. Additionally, comprehensive and collision coverage may be required by your lender.
Condo insurance may help protect against structural damage to the interior of your unit. Liability protection is usually another component of condo insurance. It's important to understand what your policy covers versus what may be covered by your condo association's policy.
If you rent, you'll likely find that your landlord has an insurance policy to help protect their building and their personal property, but that policy would likely not cover the belongings owned by you, the renter.
Renters insurance commonly helps protect your personal property (furniture, clothing and electronics, for instance). It also typically includes liability coverage if you're found responsible for damages to someone else's property or a guest's injuries in your home. Renters insurance may also help pay for increased living expenses, such as if you have to temporarily relocate if your rented home becomes uninhabitable due to a covered loss.
Boats, golf carts, all-terrain vehicles and snowmobiles are among the vehicles that may be protected by specialized insurance policies. These types of policies generally help cover the vehicle (for instance, if it's damaged or stolen) and provide liability protection just in case you cause damage to someone else's property or injure someone else while riding it.
Landlord insurance may help provide important protections for a property that generates rental income. This type of policy typically helps protect the building you own from certain perils — damage caused by hail or fire, for example. It also usually offers liability protection, which may help cover you if you're sued following an incident on your property.
It's important to remember that, regardless of what type of property and casualty policy you have, coverage limits will apply. Be sure to read your policy or check with your agent to learn about your coverage. Limits can typically be adjusted based on your specific situation.
A local agent can help you determine which types of coverage are right for you. Then you can focus on enjoying your everyday life with the peace of mind that comes with knowing you have the appropriate protections in place — just in case.