Property insurance protects buildings and their contents, with various types available. Open risk policies cover any damage not excluded, while named peril policies list covered causes. Homeowners, renters, and commercial tenants can purchase insurance, and liability insurance is also available. Consult an agent to ensure suitable coverage.
Property insurance is a form of insurance that protects a building and its contents. There are various types of this insurance available in the market, and when purchasing this insurance product, individuals should definitely consult an insurance agent to confirm that they are purchasing a suitable product for their needs. When discussing insurance needs, people should be explicit about the type of insurance they want and the level of coverage they need.
In an open risk property insurance policy, any form of damage that is not specifically excluded in the policy is covered. The named peril policies detail a list of possible causes of damage that are covered. Property insurance can be specialized, such as earthquake, flood, fire, boiler, and theft insurance products. The insurance policy will usually contain very clear language about the exclusions, and the exclusions can vary depending on where someone lives and what type of policy it is.
Homeowners often purchase property insurance that will allow them to replace a structure in the event of a fire, earthquake, flood, or similar catastrophe. This type of insurance may specifically exclude the contents of the building, or it may exclude certain types of contents. For example, fixtures may be covered, but personal property may not. There are separate policies available for residential, commercial, and industrial properties.
Renters can also purchase homeowners insurance. Commercial and industrial tenants commonly purchase insurance so that if their inventories are damaged, they can replace them. Because a business can have large amounts of capital tied up in inventory and equipment, such losses could be catastrophic without insurance to cover them. Residential renters can also benefit from homeowners insurance, although many do not have insurance. Renters are sometimes surprised to learn how much it will cost to replace their belongings after a flood or fire without insurance to cover the loss.
Before purchasing homeowners insurance, renters should ask their landlords about the policies already on the property and what those policies cover. It makes no sense to over-insure a building and its contents, and a landlord may have advice on renter’s insurance agencies or companies.
Property liability insurance is also available. Property damage insurance, as it is known, protects people from legal damages resulting from injury or damage caused on or by their property. For example, a retail store owner might maintain a property damage insurance policy so that if someone slipped and fell in the store, the insurance would pay for medical costs and legal damages from a lawsuit.
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