Property & Liability Insurance

Overview

Property insurance typically includes several types of coverages to protect against damage or loss to property. Here's a breakdown of the main types:

• Dwelling Coverage
  ◦ Covers the structure of your home (walls, roof, foundation) against risks like fire, storm, or vandalism.
• Other Structures Coverage
  ◦ Covers detached structures on your property, such as garages, sheds, or fences.
• Personal Property Coverage
  ◦ Protects personal belongings like furniture, electronics, and clothing from covered perils.
• Loss of Use / Additional Living Expenses (ALE)
  ◦ Pays for temporary living expenses if your home becomes uninhabitable due to a covered loss.
• Liability Protection
  ◦ Covers legal expenses and damages if someone is injured on your property and you're found responsible.
• Medical Payments to Others
  ◦ Pays for minor medical bills for guests injured on your property, regardless of fault.
• Named Perils vs. Open Perils
  ◦ Named Perils: Covers only specific risks listed in the policy.
  ◦ Open Perils: Covers all risks unless explicitly excluded.
• Optional Coverages / Endorsements
  ◦ Flood insurance (often separate)
  ◦ Earthquake coverage
  ◦ Sewer backup
  ◦ Valuable items (jewelry, art) with higher limits
• Emergency Hotel Expenses
  • Homeowners Insurance may cover hotel stays if you're displaced due to a covered event (e.g., fire, water damage).

Fire Insurance

Fire insurance is a type of property insurance that covers damage and losses caused by fire. Here's a quick breakdown:

• Coverage: Protects buildings, machinery, stock, and personal belongings against fire, lightning, and sometimes explosions.
• Add-ons (Riders): Can be extended to cover events like earthquakes, riots, or smoke damage.
• Claims: Policyholders receive compensation to repair or replace damaged property.
• Premiums: Calculated based on property value, risk level, location, and past claim history.

Why It's Important:

• Safeguards assets and investments.
• Essential for businesses and homeowners to manage risk.
• Often required by mortgage lenders.

Burglary Insurance

Burglary insurance is a type of property insurance that covers losses or damages caused by theft involving forceful or unlawful entry into a property. Here's a quick overview:

• What Burglary Insurance Covers:
• • Loss or damage to property or stock due to burglary or attempted burglary.
• • Damage to premises (like broken locks, doors, or windows) during a burglary.
• • In some cases, coverage includes armed robbery or hold-ups on premises.

• What's Typically Not Covered:
• • Theft without forcible entry (like if a door was left unlocked).
• • Inside jobs or theft by employees (unless additional coverage is purchased).
• • Losses occurring during war, riots, or civil unrest (unless covered under endorsements).

• Who Should Consider It:
• • Business owners with physical assets (inventory, equipment, etc.).
• • Homeowners or tenants looking for extra protection beyond standard home insurance.
• • Anyone in a high-risk area for theft.