Property damage is relatively self-explanatory: it’s the idea of one person, company, or other entity damaging something that belongs to someone else. Such damage can be caused by several factors, including natural disasters like floods and fires, or even negligent use such as a car accident.
What we hope to do in this post is help you better understand what property damage entails and why you might feel like it’s worthwhile to have property protection insurance. So let’s get started.
What is Property Damage?
Property damage refers to the process of one party harming another’s property. If you have damages to your property because of another person’s negligence, you’re likely entitled to compensation. This is a pricey proposition without insurance as it can cost thousands of dollars each time.
To give you a better idea of how property damage can occur, let’s take a look at some examples:
- A person causes a fire in his own home that damages the home of someone else: This is what we call negligence, and it can lead to serious claims if you’re found liable.
- A person’s wild boar escapes from its enclosure and ends up causing major damage to another’s property: This person may have to pay for the damages caused by their own negligence.
- A car causes major damage to someone else’s property; the driver has insurance, but the policy won’t cover the damages: Here again, you might be entitled to compensation.
The last example shows that property damage claims can get complicated quickly, and you must discuss your particular scenario with an insurance agent or lawyer.
What is Property Protection Insurance?
Property protection insurance is a type of insurance that protects you against damage caused by one of the following:
- Natural disasters, such as floods and typhoons: This type of insurance protects you from paying for damages caused by natural disasters.
- Liability: In which case, the property protection it offers you can help offset any claims against your company or another third party from whose property the damage was caused.
- Theft: This type of property protection insurance helps cover the cost of replacing the stolen property.
- Politics: Politically motivated sabotage can damage your property.
- Parasites: This form of insurance protects you from damage caused by insects and other pests.
- Terrorism: Terrorist attacks may cause extensive damage, both physical and financial losses, to your property.
Why Do You Need Property Protection Insurance?
Most of us own property, and we want to keep it. There are various reasons people want to protect their property. Still, they generally fall into one of two categories: People who want to make sure they’re compensated if their property is damaged and People who want a layer of financial coverage on top of other properties they own.
You might find a general liability policy adequate if you fall into the first category. If you fall into the second, you’ll need to speak with an insurance broker/agent.
What is General Liability Insurance?
A general liability policy provides a layer of protection over your property. It covers claims of negligence, personal injury, and other actions. In short, it ensures your property against damage in the event of an accident, fire, storm, or theft. This type of insurance might be offered as a rider to a homeowners policy or even as a stand-alone policy. It doesn’t necessarily mean that the policy fully covers you.
General liability insurance can come in many forms and levels, while some companies are better than others at protecting their client’s interests. If you have a home, you’re likely to be required to purchase some form of homeowner’s policy.
Just because you own property doesn’t mean you need a lot of coverage. It helps to know exactly what kind of liability protection you want and how much it will cost. If you fall into the second category, you can speak with an insurance company representative to craft the right policy for your needs.
Property Protection Insurance
Of course, general liability insurance is only one form of property protection. If you own multiple properties or simply have many properties, you might want to speak with an insurance broker or agent who can help you determine what kind of coverage fits your needs. You may already have this type of coverage and not even realize it.
For example, some homeowners’ policies offer accidental death and dismemberment coverage. This type of policy protects your family if you are killed or injured in an accident.
There are also flood policies and other forms of property protection policy known as special risks insurance that can be purchased for items aside from your home for additional property protection. If you own rental properties or any other property, you might consider a special risk policy to cover those items.
What does Property Protection Insurance cover?
You’ll need to ask your broker or agent about this aspect of insurance. Here are some of the issues they might cover:
- Personal property (jewelry, clothes, purses, etc.)
- Property that’s not easily replaceable (animal habitats, etc.)
- Automobiles and other vehicles
- Property in transit (automobile, shipping container).
- Property from your business
- Property in a storage facility
If you are looking for the best rental insurance company in California, there is no better option than My Property Protect in the town. You can rely on this company for all your property protection insurance needs.
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