owners learning what property and casualty insurance covers with their agent

What Does Property and Casualty Insurance Cover?

Property and casualty insurance –also known as P&C insurance– protects property owners and the property they own. P&C insurance is a broad term that includes several different forms of insurance such as homeowner’s insurance, renter’s insurance, and auto insurance.

How Does Property and Casualty Insurance Work?

P&C insurance functions like other types of insurance. In the event of personal property being damaged, owners can file a claim with their insurance company to be reimbursed for the property repairs or losses. Or, if an individual sues the owner for damages, liability insurance can help cover this claim. 

What Does Property and Casualty Insurance Cover?

As the name implies, P&C insurance can be split into two parts: property and casualty.

Property

Property insurance covers assets, such as structures, belongings, houses, high-value toys, cars, and even the property your business owns. The property aspect of P&C insurance protects against interior or exterior damage, vandalism, theft, damage from weather-related events such as wind or fire, and more. 

Casualty

Casualty insurance includes liability coverage. This protects an individual from being legally responsible for injuring another person or damaging another person’s property. Typically, casualty insurance will cover court costs and retributions the individual is required to pay up to their coverage limits.

What Does Property and Casualty Insurance Not Cover?

Most insurance will offer some form of a property and casualty plan. However, health and life insurance are not covered within these plans. 

What Are Coverage Limits and Exclusions?

When it comes to property and casualty insurance, it’s important to know that every policy has limits on how much it will cover. These limits are the maximum amount your insurance will pay out for a claim. For example, if your homeowners’ policy has a $300,000 limit for property damage, that’s the most your insurance company will pay if your home is damaged or destroyed.

Now, while it’s great to have coverage in place, not everything is automatically covered. Insurance policies often have exclusions, which are specific situations or items they won’t cover. For instance, while a standard homeowners policy may cover fire or theft, it may not cover flood damage. Floods often require a separate policy. Similarly, certain high-value items like expensive jewelry or artwork may only be partially covered unless you’ve added extra protection for them, known as a rider.

The takeaway? Make sure you understand both your policy limits and the exclusions. You don’t want to be caught off guard by an unexpected event that isn’t covered or find out that your coverage isn’t enough to replace your property fully. It’s always a good idea to review your policy with your insurance provider regularly to ensure you’re adequately protected.

Property and Casualty Insurance Bundles

Property and casualty insurance are typically bundled together into one insurance policy. For example, these policies may include:

  • Homeowners insurance
  • Renters insurance
  • Landlord insurance
  • Condo insurance
  • Car insurance
  • Powersports insurance

Coverage can vary per bundle. Read on to learn what each policy generally offers regarding personal property and liability coverage. 

Homeowners Insurance

Homeowners insurance is a type of property insurance that protects homes and other assets against interior or exterior damage and loss of possessions through theft. Typically, homeowners insurance covers the home, furnishings, and other belongings and provides liability coverage against accidents on the property. 

Homeowner’s insurance includes three basic levels:

  • Actual cash value
  • Replacement cost
  • Extended replacement cost/value

Renters Insurance

Renters insurance provides coverage against losses for a tenant’s personal assets within a rental property. Additionally, renters insurance can protect the tenant against losses resulting from liability claims in some cases. 

Landlord Insurance

Landlord insurance varies by plan but typically covers the damages to physical property as well as offers liability protection. Nearly 75% of landlord liability lawsuits could have been avoided with a simple landlord insurance policy. 

Condo Insurance

Condo insurance is similar to homeowners insurance, protecting against losses and damages, but is specific to a condominium unit. 

Auto Insurance

Property and casualty insurance also includes auto insurance. Car insurance covers the damage to a vehicle following an accident or can replace the vehicle if it is stolen. The liability insurance can cover damage done to other vehicles or can help pay for injuries to other drivers. 

Power Sports Insurance

Similar to auto insurance, power sports insurance covers repairs to power sports vehicles from damages and provides financial liability coverage for the operator. 

Power sports that can be insured include but are not limited to:

  • Motorcycles
  • Boats
  • ATVs
  • Recreational vehicles
  • Personal watercrafts
  • Travel trailers

Looking for More Information?

Check out our policies and how they can help to protect your property, here. 

Apex Risk is dedicated to changing that through clear explanations and guidance that addresses real problems that may arise for your business in your unique industry. Learn who we are and why we do what we do, here.