IN PLAIN ENGLISH

Property and casualty insurance covers your liability and personal property against injury, damage, or loss.

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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.

 


 

Ava Lynch LinkedIn

Based in Austin, TX, Ava has been in the insurance industry as a licensed agent for 4-plus years. Ava is currently one of The Zebra’s resident property insurance experts and has been featured in publications such as US News Report, GasBuddy, and Yahoo! Finance.

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Recent Questions:

How do I get a false claim off my insurance report?

I would call my prior insurance company (your renters provider) showing the false claim and see how they have it marked. I would also have them send confirmation that the claim was dropped and not paid out.

If I'm on the deed but not the mortgage, can I still be on the homeowners insurance?

Thanks for the question. I see no issue with you being on the insurance if you are on the deed to the property.

Is it possible to bundle three lines of insurance?

It is challenging to say which insurer would be the best for bundling multiple lines of insurance. Most companies would likely give you multiple policies to cover your vehicles, RV, and homes.

Is it legal to change homeowners insurance policies without the approval of all parties on the deed?

As long as you're on the deed, you do not need permission from all parties to change your homeowners insurance if it is in your name. Anyone with a vested interest could also insure the property how they see fit. If you have any questions, don't hesitate to ask.

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