Almost every homeowner and renter should have property protection insurance. Insurance helps to protect you from financial loss if you or your property are damaged or destroyed. Some people think that they don’t need to worry about home insurance because their house is paid for, but this isn’t the case!
A property protection insurance policy usually covers expenses incurred if an insured person’s property is damaged or destroyed through fire, lightning, vandalism, theft, water damage, and so on. However, there are many things to consider before making a purchase.
Do you have enough coverage? What about natural disasters like floods and earthquakes? Is the deductible too high for your liking? We’ll answer these questions and more in our blog post all about property protection insurance. But let’s get started with some basic information.
What is Property Protection Insurance?
Property protection insurance is an affordable way to protect your assets from risks such as fire and theft. Property protection insurance is also referred to as property insurance and home insurance.
This insurance covers the structure of your home against covered perils, and it provides coverage for personal property if it is stolen, damaged, or destroyed. Most homeowners’ policies include a standard liability provision that protects up to $500,000 for injuries and deaths caused by you or a member of your family on the premises.
Property insurance is sold in several different forms: homeowner’s insurance, renter’s insurance, condominium insurance, and landlord’s insurance. The form you need depends on your property ownership status and the cost of replacing your possessions.
Two main factors determine the cost of property insurance: the value of your insured property and the level of deductible (how much you pay before your insurer picks up the tab). You can opt for host insurance by Property Protect to get high-valued insurance.
What is Covered under Property Protection Insurance?
Property protection insurance provides coverage for the following:
- Fire: Coverage for damage caused by fire and the costs of extinguishing a fire. This type of coverage usually also includes damage from smoke, heat, and water.
- Weather-related losses: Coverage for your home if it is damaged by wind, hail, or other natural disasters. Your policy may also cover you for earthquake damage, but this varies by state.
- Vandalism and malicious mischief: Coverage for damage caused by people who intentionally damage your home. This coverage applies if you are the victim of a crime as well.
- Windstorm and hail: Coverage for damage caused by strong winds, such as hurricanes and tornadoes. Even if you don’t live in a state prone to these types of storms, some insurers offer optional windstorm coverage because the cost of the premiums can be less than the claims paid out over time.
- Miner’s, lumber, and equipment: Coverage for damage caused by trees, boulders, dirt, and other debris that fall from the sky.
- Fire-related theft (arson): Coverage for the cost of repairing or replacing items stolen or damaged during a fire.
What are the different types of Property Protection Insurance?
1- Home Insurance: This coverage protects your home’s structure and your belongings against damage resulting from natural disasters, and accidental or malicious damage. If you rent rather than own your home, this type of policy provides coverage for renters. It usually also covers personal liability if one of your guests is injured on your property.
2- Renters/condo Insurance: Similarly, this type of policy provides coverage for renters or condo owners. It typically covers the same types of losses as home insurance but at reduced prices because the buildings are smaller and less valuable.
3- Flood Insurance: Coverage for damage to your home and possessions caused by water. If you live in a flood-prone area, you may need to purchase a separate policy that covers flood damage in addition to the standard home or renter’s policy.
4- Landlord Insurance: It will protect you legally and financially from the damages or injuries related to a rental property you own. When you get this policy it will give you 3 core protections including property damage, liability, and lost rental income.
Who should buy Property Protection Insurance?
Many homeowners purchase insurance when their home is built because they think it is best to protect themselves before they have a chance to lose their investment. However, some property owners do not need to buy property insurance until they are hit with a claim.
If you are planning to purchase property protection insurance, your financial situation should be stable enough that you don’t run the risk of losing your home or other possessions in the unfortunate event of a fire.
What Kinds of Property Protection Insurance Are There?
There are two major types of property protection insurance. Both of them are discussed below:
- Actual Cash Value Insurance: This type of policy provides coverage for the market value of your possessions after a loss, minus depreciation, up to an agreed-upon limit. Depreciation depends on what condition the property was in before the loss. If items are damaged beyond repair, they’re considered to be worthless.
- Replacement Cost Insurance: A replacement cost policy pays for the full cost of replacing your property up to an agreed-upon limit. This also includes additional expenses such as repair costs or storage. In a real way, you are getting paid to replace your items even if it is not economical to do so.
Can You Buy Covered Property Insurance Online?
Covered property insurance can be purchased through an agent, or you can purchase it directly from an insurer by phone or on the Internet. You can often shop around for the best coverage and prices by comparing quotes from several different carriers online.
Are you looking for the best rental insurance company in California, look no further than My Property Protect as it is one of the most popular and highly reviewed insurance companies.
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