Investing in property and casualty insurance is a wise choice. First, the coverage protects your belongings in case of damage or theft. Second, liability is also a component of this coverage. Liability helps when you’re responsible for injuring someone or damaging their property. It’s important to note that property and casualty coverage isn’t always an option. Here are some policies that commonly offer coverage for property and casualty.
Insurance for Renters
Most renters assume their belongings are covered by their landlord’s insurance policy. But it’s likely the landlord’s coverage is only for the building and their own belongings. That means your belongings are in fact not covered.
Renters insurance offers coverage for your belongings. Items such as your clothes, electronics, and furniture are protected. This type of policy also includes liability coverage. If someone is injured in your home, then liability will help if they decide to sue. It will also help if you’re liable for damaging someone’s property. Renters insurance will sometimes pay your expenses if you’re forced to relocate. But the relocation must be temporary, and the result of damage to your home.
Insurance for Homeowners
Homeowners insurance is recommended for anyone who owns a home. The coverage protects your home and belongings against mishaps such as fire or theft. The insurance company will help repair or replace damaged or stolen items. Liability is included as well, so you’ll have help with related expenses if a visitor is injured in your home. The same is also true if you damage someone’s property.
Note that flood and earthquake damage isn’t covered by homeowners insurance. Coverage for damages caused by floods or earthquakes require two separate policies.
Condo Insurance
Condo insurance is similar to renters insurance. The coverage starts at your front door, and doesn’t include anything else in the building. The condo probably has a policy that covers common areas and property. Anything inside of your condo is usually your responsibility. Condo insurance also provides liability coverage.
Motor Vehicle Insurance
The policy type determines if your car insurance includes property and casualty coverage. Most states require all drivers to have liability insurance. When liability is legally required, then any vehicle driven on a public street must have coverage.
Liability only pays for damages or injuries that you cause during an accident. It doesn’t actually pay for any damages or injuries that you sustain. You’ll need comprehensive or collision insurance to cover your own damages. Collision covers damages from another vehicle or an object. Comprehensive helps to replace or repair your vehicle following incidents not involving a collision, such as theft or vandalism.
Worth the Investment
Property and casualty insurance is a worthwhile expense. It’s great to have financial assistance following an accident or mishap. Liability coverage is useful as well, considering the expenses you might face during a lawsuit.
