Property and Casualty Insurance

What is Property and Casualty Insurance?

The Property portion of Property and Casualty (P&C) insurance refers to coverage for personal belongings and property in the event that they are damaged or stolen. Most property is covered against things like theft, vandalism, fire, and weather. There are different types of property insurance. But the main components are:

• Car insurance
• Home insurance
• Renters insurance
• Condo insurance
• Specialty lines (RV, motorcycle, etc)

The Casualty portion of P&C insurance refers to coverage for incidents in which you are legally liable for property damage or injury caused to another party. Your liability is covered in and out of court by your insurance company when you are considered liable or negligent during a crash or incident at your home. Liability is often referred to as “Third Party” coverage.

What Types of Policies Fall Under P&C Insurance?

P&C insurance describes a broad category of coverage types. The most common policies that fall under the P&C category are:

Car Insurance: Can help cover you, your passengers, and other drivers in the event of a crash. This type of policy can also provide coverage for damage to your vehicle after a crash and other events like theft, vandalism, and weather damage.

Condo Insurance: In addition to covering your personal items, condo insurance covers the interior structure of your residence in conjunction with the insurance policy carried by your condo association. This type of policy should also provide coverage for your liability.

Homeowners Insurance: Differing from condo insurance, home insurance generally covers the entire structure of your residence (interior and exterior) in addition to your personal belongings against certain types of damage or loss. This type of policy also includes coverage for your liability for injury that may occur in your home and outside of your residence if you are legally liable for injury or damage to someone else.

Renters Insurance: Commonly referred to as “contents” coverage, renters insurance provides coverage for your personal property if it is damaged or stolen. This type of policy also includes liability coverage for injury and/or damage for which you may be considered liable or negligent.

Special Lines Insurance: This type of policy is intended for things motorcycles, boats, golf carts, and recreational vehicles. Special Lines policies generally provide liability coverage and optional physical damage coverage for the vehicle itself; much like car insurance.

While many of these policies share similarities, they all offer varying levels of coverage. It’s extremely important to be aware of how your policy applies, what it covers, and what it does not cover. Review your policy contract or consult with your agent or insurance provider for a better understanding of your policy.