Property insurance is a form of insurance which protects a building and its contents. There are a number of types of this insurance available on the market, and when purchasing this insurance product, people should definitely consult an insurance agent to confirm that they buy a product which is suitable 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 peril property insurance policy, any form of damage which is not specifically excluded in the policy is covered. Named peril policies spell out a list of potential causes of damage which are covered. Insurance for property can be specialized, as in the case of earthquake, flood, fire, boiler, and theft insurance products. The insurance policy will usually contain very clear language about exclusions, and exclusions can vary depending on where someone lives and what type of policy it is.
Property owners commonly purchase property insurance which will allow them to replace a structure in the event that they experience 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 movable property may not be. Separate policies are available for residential, commercial, and industrial properties.
Tenants can also buy property insurance. Commercial and industrial tenants commonly purchase insurance so that in the event that 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 property insurance, although many are uninsured. Renters are sometimes astounded to learn how much it will cost to replace their possessions after a flood or fire without insurance to cover the loss.
Before buying property insurance, tenants should ask their landlords about the policies already out on the property, and what is covered under those policies. There's no point in overinsuring a building and its contents, and a landlord may have advice about insurance agencies or companies for the tenant.
Liability insurance for property is also available. Property casualty insurance, as it is known, protects people from legal damages resulting from injuries or damage caused on or by their property. For example, an owner of a retail shop could maintain a property casualty insurance policy so that if someone slipped and fell in the shop, the insurance would pay the medical costs and any legal damages handed down as a result of a lawsuit.
