Property And Casualty Insurance-We All Wish We Didnt Need It

Let's face it, insurance is one of those things we wish we didn't have to buy. After all, it's easy to think nothing will happen, and that you will somehow be lucky enough to never need insurance. However, no matter how careful and conscientious you are, the world is filled with people that are not. And that doesn't take into account natural events that affect us on a regular basis. Property and casualty insurance is made to protect the things you own if something should ever happen. Here are some things you should know before you get a new policy.

Property insurance itself covers a wide range of options; however, as the name implies, it is made to cover your property. Fire insurance, earthquake insurance, flood insurance, and home owner's or renter's insurance all cover property against loss, damage, or theft. As you can see, all of these are external events caused by things that you have no direct control over.

Property and casualty insurance will cover you against damages to your belongings, but casualty insurance can cover consequential damages that straight property insurance may not. For example, if someone breaks into your home through a window and steals your jewelry; the property insurance would pay to replace the items stolen, but the casualty insurance would pay for you to replace your window.

Not all property insurance is the same, so it's important to understand what each policy offers and how it compares to your particular needs. 

The first type will give you the full replacement cost for any property you lose, regardless of how much it has depreciated. So, if you have a high-definition television that costs $1,500 but is now only worth $500 due to depreciation, a full replacement policy would pay you the full $1,500. 

An extended replacement policy will pay you more than the actual value of the property being replaced. This typically applies to homes that need to rebuild, and the idea is that construction costs are always going up, so replacing a home will also cost more. Of course, this kind of coverage comes with a cost in the form of a higher premium, but it could be well worth it if you ever have a catastrophic loss that.

A cash value property insurance policy is the most affordable, and most common. These are the policies that payout based on what your property is worth now. In other words, they take depreciation into account and pay you accordingly. 

Casualty insurance is a bit different and will cover damages to both people and property. It may not cover natural disasters such as fires or floods, but it will cover you against things like terrorist attacks, fraud, and burglary. It also has a liability component that protects you if anybody gets hurt on your property.

Property and casualty insurance each complement one another, so getting both policies makes a lot of sense. Having both will protect your property against most potential losses, and knowing you're protected can give you something money can't buy: peace of mind.