Property and Casualty Insurance Explained

Property and casualty insurance is insurance that most people buy to protect their homes, cars and businesses. The two categories of property and casualty insurance are personal and commercial. Personal insurance for individuals consists mainly of automobile and personal property. Commercial insurance for businesses consists of many types but the most common are property, liability and workers compensation. Insurance is a necessity for individuals and businesses to cover unexpected losses and injury.

One of the most common types of insurance for individuals is automobile insurance. This insurance generally covers damage to the vehicle and medical costs for injury to others. Automobile insurance varies from state to state but the coverages are generally the same. Some states have some sort or no-fault insurance. No-fault insurance was designed to have each driver’s insurance company pay for damages no matter who is at fault. It is generally illegal in every state to drive a vehicle without some kind of automobile insurance in effect.

Another type of common insurance for individuals is personal property or homeowners insurance. This type of insurance covers losses to an individuals home and property. It also provides coverage for people who get hurt on an individual’s property. This type of insurance is available for dwellings, mobile homes and apartments. Personal property insurance provides coverage for losses to the dwelling, any outbuildings such as a garage as well and their contents. Insurance that individuals purchase for apartments is called renters insurance and covers the insured’s possesions that are within the apartment.

The most common type of commercial insurance is property and workers compensation. Liability which is separate from workers compensation insurance is purchased by businesses as well. Property insurance for businesses covers losses to the building or buildings on the premesis as well as the contents. Workers compensation insurance is purchased to protect the business when an employee gets hurt while working on the job. Most states have some sort of workers compensation that is required for businesses. Commercial automobile insurance is also available for businesses that require the use of a vehicle or a fleet or vehicles.

Property and casualty insurance exists to cover for losses that are sustained by individuals as well as businesses. Casualty insurance mainly protects a person or business against legal liability for losses caused by injury to other people or damage to the property of others. Insurance is a must have for any individual or business to protect themselves from any variety or unforeseen or unexpected losses that can occur.