A Quick Guide To What Property & Casualty Insurance Actually Means

Insurance Blog

If you have been told that you need to purchase casualty insurance, or that you need property and casualty insurance, it is important that you understand what specific type of insurance you are actually being advised to purchase. The term casualty insurance, as well as property insurance, actually applies to a broad range of different types of insurance. Here is a brief overview of what exactly is meant by property and casualty insurance, and all the forms of these two insurances that are available to you. 

What Property & Casualty Insurance Really Means

As a broad definition, property insurance is insurance that protects your personal belongings, such as your home and vehicle, against all sorts of natural and man-made damages and disasters. Casualty insurance, on the other hand, provides you with protection from liability if you are found to be responsible for an incident that caused injury to another person or to their belongings. Casualty insurance is often referred to as liability coverage.

Types Of Insurance That Provide Property & Casualty Coverage

There are many different insurance policies that provide both property and casualty coverage, depending upon how your policy is written up. Here is a list of the most common types of insurance that provide that coverage.

• Homeowner's Insurance: Homeowner's insurance is one of the most common types of insurance policy, and it provides both property and casualty coverage. Your personal belongings are generally covered against things like theft and fire. You are also protected against certain natural disasters as well. The exact natural disasters that are covered depend upon your particular policy. Additionally, these policies generally include liability or casualty coverage. This portion of your policy kicks into effect if someone is hurt while at your house; it will cover their medical bills as well as costs if they sue you. It will also cover you if you hurt someone else's property; your insurance will cover the replacement cost for the injured party. 
• Car Insurance: The second most common form of property and casualty insurance is car insurance, although the coverage is called something a little different. Most states require you to have liability coverage, which will pay for repair and hospital bills if you cause an accident and injure another driver and their vehicle. In order for your vehicle to be covered though, you need to make sure that you have comprehensive coverage.
• Renter's Insurance: Renter's insurance is a little different from homeowner's insurance. Renter's insurance only protects your personal property, not the dwelling you are living in. However, you can still get the same type of liability coverage that you get with homeowner's insurance. If someone is hurt at your rental home or their property is damaged, your liability coverage would pay for the damages.

As you can see, many different types of insurance policies provide for property and casualty insurance. It is important to know that these two types of coverage are generally part of a larger policy, and often go by different names, such as liability coverage. Talk to your insurance agent and make sure your policy protects the things that belong to you and protects you from being sued for injuries or damages by an outside party. Contact a business, such as Donaghy Kempton Insurors, for more information. 

16 February 2016