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.

 

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.

 


 

This article was written by one of The Zebra’s resident insurance experts. Each article is thoroughly researched to ensure we provide readers the most accurate — and helpful! — information possible. That’s insurance in black and white.®

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Recent Questions:

Who is the cheapest auto insurer in Florida?

Auto insurance rates are extremely volatile based on your personal profile. Even something as simple as your zip code can cause your rate to differ, so there isn't any single company that offers the lowest rate across the board.

Can I purchase car insurance for one week?

Most policies are written for 6-12 month terms so you could possibly purchase a policy and cancel when you no longer need it. A non-owners policy will not cover damage to the vehicle you are driving, however, so you might want to see if your employer can add you to their insurance policy for more protection.

Does North Carolina accept proof of insurance on my phone if I were to get pulled over?

Unfortunately North Carolina does not allow for digital proof of insurance just yet so you will need to print a hard copy to keep in your vehicle. That could always change in the future, but currently a hard copy is required.

Why must I have a garage to qualify for classic car coverage?

Classic car insurance and a standard auto policy can differ significantly. Since most, if not all, classic auto policies cover your car based on a stated amount value rather than a depreciated value, there are more requirements to qualify for a policy.