Property and casualty insurance provides protection against property losses to your car, home or business and against legal liability that may result from injury or damage to the property of others. This type of insurance can protect a person or a business with an interest in the insured physical property against losses.
Auto Insurance
An auto insurance policy covers you and other licensed drivers to whom you give permission to drive your car (your spouse, relatives who live in your home). The policy is provides coverage for both bodily injury and property damage liability as well as physical damage to your car. This damage can include both that caused by the collision and damage cause by flood, fire, wind, hail, etc.
Auto insurance typically covers personal injury (PIP), medical payments, uninsured motorist, underinsured motorist, auto rental, emergency road assistance and other damages to your car not caused by a collision such as flood, fire and vandalism. Other coverage is available as well.
Insurance rates depend on many factors, including your driving record, the value of your car, where you drive, how much you drive, your marital status, your desired coverage, your age, sex and even your credit history.
Homeowners Insurance
This is an insurance policy covering the structure of your house and other structures on the property, as well as the contents of your home, and some forms of personal liability. The policy may cover direct and consequential loss resulting from damage to the property itself, loss or damage to personal property, and liability for unintentional acts arising out of the non-business, non-automobile activities of the insured and members of that insured's household.
There are six standard forms of homeowners insurance:
- HO 00 02 (Homeowners 2, Broad Form),
- HO 00 03 (Homeowners 3, Special Form),
- HO 00 04 (Homeowners 4, Contents Broad Form),
- HO 00 05 (Homeowners 5, Comprehensive Form),
- HO 00 06 (Homeowners 6, Unit Owners Form),
- HO 00 08 (Homeowners 8, Modified Coverage Form),
As with any type of insurance, it is critical that you read the insurance policy carefully so that you know exactly what it will cover. The amount of coverage you should consider should be based on the replacement cost value of your home or property. Replacement costs on one's dwelling provides that if, at the time of loss, the amount of insurance covers at least 80% of the replacement cost of the dwelling, the loss will be paid on a replacement cost basis.
Flood Insurance
This is a separate type of coverage that you will have to purchase if you consider flood to be a risk for your business or property. If you live in a flood-prone area and you have a mortgage, the lender will require you to purchase adequate coverage to insure the property. If you own the property you can elect to self-insure and not buy insurance, but you have to remember that any damage caused as a result of flooding will be your financial responsibility. The cost of this kind of damage can run from the hundreds to thousands of dollars, so it's worth considering purchasing the insurance to transfer this risk. If you don't live in a flood-prone area, you may qualify for a discounted rate, which means a lower premium for you.
Windstorm Insurance
Like flood insurance, windstorm insurance is a separate type of coverage that protects your home or business against wind damage. Wind damage may result from items flying and destroying your property as a result of a hurricane, hail, snow, sand or dust. Coverage for windstorm may be limited in states prone to hurricane and tornadoes.
