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Property insurance is a general term that covers a wide range of losses which include damage, fire and theft to any type of property.

Property insurance may cover specific insurances such as-:

- Fire insurance
- Home insurance
- Boiler insurance
- Landlord insurance
- Builder's risk insurance
- Flood insurance
- Earthquake insurance
- Terrorism insurance
- Crop insurance
- Windstorm insurance
- Aviation and Marine insurance among others

Property insurance covers the property itself and the contents in the property. Businesses, industries and other commercial organizations buy property insurance to cover the business property, inventory, furniture, money and the machinery and equipment within the property. Businesses may buy extra covers for the losses that are likely to occur in their area of operation depending on what they are vulnerable to whether hurricanes, earthquakes, snow or storms. Insurance companies may sell property insurance which cover many perils in one policy such as damage and loss due to fire and theft or they may sell each cover for a peril separately such as theft insurance, fire insurance, liability insurance etc.

Business Owners Policy BOP covers both property insurance and liability insurance. Some BOPs also include businesses interruption insurance to cover the losses and extra-expenses incurred by loss of business during the restoration period for up to one year. Most small and medium-businesses prefer this type of insurance because the premiums are lower than when different insurances are paid separately although the compensation may be lower than the total of all. Large businesses require more coverage and may prefer individual coverage for each peril although the premium is higher, so that, when the loss arises the compensation will be enough to return them to business.

Construction companies buy Builder's risk insurance to protect the building, the equipment and those working at the site from loss, damage and injury. If this insurance is not bought and a loss occurs the builder will lose a lot of money. It is important to purchase an 'all risk' coverage which will cover loss due to any cause.

Individuals buy home insurance to cover their homes against loss by theft, fire, vandalism and damages caused by smoke, lightning, vehicles and aircraft. These risks are clearly stated in the policy. Other perils such as floods, earthquake, hurricane, boiler repairs and terrorism have to be covered separately. There are exclusions of perils that will not be compensated which include losses caused by war, civil war and other calamities. The policyholders should read the policy carefully to note the exclusions so they will not be disappointed when a loss that was excluded arises.

The home insurance covers the home and the contents within the home as well as personal possessions. When buying a home by mortgage the bank requires the homeowner to purchase mortgage insurance. This protects the bank against loss when anything happens to the home or when homeowner defaults. Home insurance includes liability insurance which covers personal injury and accidents that might happen in the home.

Last modified onWednesday, 03 April 2013 00:06
More in this category: « Personal Injury Casualty »

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