Property and Casualty Insurance Guide

Property and casualty insurance takes care of many risks to the individual or the business’s property, such as theft, damage, loss of money, furniture, machinery, records, even trademarks, brand names, and supplies. There are certain particular insurance policies available which cover natural disasters like earthquakes, fires, and floods which damage your residence or business.

Your property can get insurance for multiple or specific dangers. You will be asked to identify very specifically what was lost in the incident. An example being, your house burns down, you may make your claim under “fire disaster property insurance”, so long as you explicitly asked to have your house insured from fires. Other disasters very commonly covered: lightning, flood, explosion, earthquake, and theft. One should consider the potential dangers of their property and location to decide upon a sound property and casualty insurance option. If careful planning is not used, you may find unnecessary expenses for insurance you don’t really require.

If you acquire what are called “open perils”, these cover all the causes of damage and loss, which are not excluded by your policy. Unless the contract denies it, you should be able to obtain assistance from the “open peril” insurance for almost all instances. If you decide to refuse coverage for floods, obviously you won’t receive reimbursements for damages caused to your home or business by flooding. You will find these items on the list of exclusions to open perils: earthquake, war, nuclear incidents. Your property might be susceptible to such events, and you will be able to purchase specified property and casualty insurance for these open peril circumstances. People on the west coast may want to be conscious of earthquake dangers; people in the south may consider tornado dangers, while people in Hawaii may have the potential danger from volcanic activity.

The property insurance premiums may be lowered if one has a positive claim history. Costs of property and casualty insurance may be reduced if one takes smart and proper precautions to avoidable damages. Examples being, smoke alarms, security cameras or personnel, flame retardant furniture, flame resistant building materials.

Many businesses and companies will often choose to insure their properties with what is called a BOP or business owner insurance policy. Property and casualty insurance, and liability insurance get combined into a single policy, to create these business owner policies. Some of the BOPs offer added expense interruption insurance. There is an option for “added expense insurance,” this giving you money that covers short term moves after incidences covered by the policy. This type of insurance will cover moving costs due to something like a flood. Interruption insurance covers losses of profits in case of interruptions, like requirements to retrofit.

BOPs typically provide less coverage compared with traditional property and casualty insurance, albeit convenient. So this is why many businesses and home owners decide to opt for additional coverage, as every location and situation may require a different level of care and caution. Be smart.

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