Property and Casualty Insurance Explained
Property coverage helps to protect your real estate investment. It insures you from damage and loss to your property caused by natural disasters such as fires, floods, storms, hurricanes, and windstorm. This also includes other specialized types of insurance like fire insurance, earthquake coverage, home insurance, or flood insurance.
There are several options available to you in terms of protecting your investment. One option is to get a cash value life insurance policy. This policy covers your property at the time of the purchase and pays out based on the current market value. Replacement cost coverage on the other hand, pays out to the amount of cash value that you invested in the policy, less any deductibles you have paid for this type of policy.
Many business owners do not know that there is a gap in between what insurers pay for property insurance and what you can actually claim on your policy. Business owners can save a lot of money on property coverage if they take advantage of gap coverage. Gap coverage is different from traditional property insurance in many ways. Although it is not an insurance product in and of itself, it is often considered a secondary product and is included in the cost of some types of business insurance products.
A good example of this is contents insurance for landlords. Contents insurance protects your personal property or things you own in your rental property. Some landlords purchase coverage for both their personal property and their rental property at the same time. If you have both kinds of coverage, you can sometimes qualify for a discount on both policies.
Landscaping and property management are two areas in which many businesses invest money in. The coverage for these areas depends on the insurer you choose. Landscape insurance protects the actual physical plant and construction site of your business, but most insurers also include property insurance for any business premises. You will pay a higher premium for this coverage than you would for burglary coverage, but you could end up saving money if your premises are protected against fires or other disasters. Insurers cover both day and night property coverage for both commercial and residential buildings.
Businesses that are involved with debris removal or recycling may benefit from another type of policy cover. Your debris removal or recycling company is likely going to require liability and workers compensation insurance. Your policy covers those expenses only up to the limit of your coverage limit. For that reason, you should check with your insurer to find out what limits are in place for your specific business premises and industry.
Another factor to consider is whether the insured has other types of coverage available through the same insurer. If you operate a gymnasium, for example, you could be covered for injuries on the property as well as for any physical damage caused by customers or employees. This type of additional coverage is usually called an accidental death clause. To find out if you have this coverage available through the same insurer, check the policy period and add on any other types of coverage that you find appropriate.
Property insurance is a necessity when you own property. Your property can be both covered and unprotected at the same time. Therefore, it is important to understand all of your coverage limits, and to compare and contrast all of your policies and limits with each other and with different insurers.
One factor to consider is what kinds of losses are specifically excluded from your coverage. There may be instances where you are required to pay for some of these kinds of losses. Generally speaking, most insurers will not cover loss due to fire, smoke, explosion, vandalism, theft, vandalism or malicious mischief, among others. However, there are some insurers that do have exclusion provisions, so it is important to read the policy carefully to make sure you know exactly what the insurer means by each exclusion.
You should also understand the various kinds of personal property coverage that are included in your policies. Personal property is generally defined as items that you own outright, such as furniture, clothing, computers, jewelry and more. Most insurance policies also include personal property coverage for some other things, such as household furnishings and appliances, personal property stored in storage facilities and the depreciated value of any personal property owned outright. Some policies, however, offer no exclusion for personal property.
Another kind of coverage, you may want to consider is the replacement cost coverage. With replacement cost coverage, you basically get a cash value that taking depreciation into account and then determines an amount that you must repay for your lost or damaged belongings. This can help you replace those belongings that are completely worthless. In addition to replacement cost coverage, many insurance policies also include rental reimbursement coverage in case your belongings are destroyed or lost.