What is Property and Casualty (P&C) Insurance & What are its Types?
What is Property and Casualty Insurance? (P&C)
Property and Casualty insurance refers to a broad insurance product that comprises several general insurance plans. P&C insurance secures you in two ways. First, it protects the assets you own like your house, and belongings. Second, it offers liability coverage in instances where you have caused an accident which has resulted in injuries to the other person or damaged their property.?
Although there is a distinction between property and casualty insurance, most of them are sold together as bundles by companies.?
How Does Property and Casualty Insurance Work?
The working of property and casualty insurance is similar to any other insurance. You are secured by the insurers for risks specified in the policy’s limit up to the limit for a premium.?
For instance, if your house is destroyed by fire and you lose everything you own, your policy’s property coverage limit will determine how much money you can be reimbursed for your losses. There are often particular coverage limitations that apply to valuables.?
It is important to keep in mind that while claiming, you have enough evidence to back your claims. A thorough inspection is carried out for the damaged goods, and there are chances of your claim being rejected in case of poor maintenance, or unauthorised construction.?
Types of Property and Casualty Insurance?
The following are different types of P&C Insurance:?
1. Homeowners Insurance
This will protect your house and belongings against unfortunate perils like fire, robbery, vandalism and storm. It will also cover you if you’ve legally damaged someone else’s property.?
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2. Car Insurance
It will cover any physical damage caused to your car and liability coverage in cases where you have caused bodily injuries to others or damaged their property.?
3. Business Insurance
This will safeguard your business assets which include buildings, inventory, and equipment. There are different types of coverage which fall under the liability umbrella such as compensation of workers if a worker is hurt on the company grounds, or in case of errors and omissions.?
4. Pet Insurance
Vet bills of your furry friends are covered under this insurance.
5. Renters’ Insurance
This is similar to homeowners insurance in terms of protecting you and your belongings from various perils. However, the key difference is that since renters don’t own the place, the coverage will not include the physical property itself. It will be covered under landlord insurance.
6. Umbrella Insurance
This is the right pick when you are looking for both- personal and commercial coverage. It is a comprehensive form of liability protection that increases your limits of casualty coverage.?
Any insurance plan may benefit from having umbrella coverage, especially in today’s environment when litigation with high damage claims is becoming more and more unpredictable.
7. Power Sports Insurance
If you love taking out the boat every weekend, this insurance is vital for you. It will cover the cost of repair in events of damage to your vehicles which include a boat, snowmobile or even a golf cart.?