Residential & Commercial Property Insurance

As a property owner, you are faced with protecting your property from certain risks. A fire could break out in any second. A tornado might sweep through the area, or a simple theft could happen. As it is almost impossible to predict when disasters will strike, and as it is sometimes difficult to preemptively protect yourself and your properties from disasters, it is recommended that you should get property insurance as soon as you own a property, especially if you are living in a high-risk region. The term might be confusing at first, and you might be unfamiliar with exactly what property insurance will cover, but don’t worry! This article will contain all the information you need about property insurance and if you have further questions you can always contact us to discuss your specific property and insurance needs.

Property insurance, what is it?

Property insurance is a kind of insurance that provides coverage for real property in case of various perils such as fire, water damage, wind, theft, or other potential hazards. The beneficiaries of a policy are typically the owner of the property, its renters or someone or an entity with an ownership or lending interest in the property. Some property insurance policies also provide liability coverage, which comes into play if someone is hurt while they are at your properties.  Loss of use coverage and many other coverages can be added to different policy types and this should be something that is discussed with a licensed insurance agent to help make sure that you and your property are properly insured.

There are three main types of property insurance coverage valuation, regarding the structure/dwelling:

• Replacement cost: this kind of insurance will pay you the amount of money you need to repair and replace your property with a new replacement (no depreciation calculated). Depreciation will not be accounted for in this kind of insurance.
• Extended replacement cost: it’s similar to the replacement cost policy, but if the construction price has gone up, the insurance company will agree to pay up to a certain percentage above the limit. That percentage almost never goes up beyond 25%.
• Actual cash value: this insurance policy pays you the replacement cost with depreciation taken into account, meaning you will receive less money if your property or items are dated.

Do note that not all disaster events are accounted for on all policy forms and that many hazards may be excluded so ALWAYS read your policy details and ask a professional licensed insurance agent to help you understand the policy details. Floods, earthquakes, tsunamis, etc. are often not covered on a standard property insurance policy but can often be added (endorsed) to the policy or covered on a separate policy. Extreme events such as terrorism or war are also often not covered.

Why should you get property insurance?

While insurance is very popular in the world of business, most homeowners don’t really look into it, at least until unfortunate events happen. Disasters are everywhere, and the worst thing is that they can strike at any time. Even with prior warning, it’s hard to keep your property safe and sound, so you will usually have to do the repair once the dust settles, and the cost will typically not be cheap. If you are covered by an insurance policy, however, the insurance company will pay for that repair cost, saving you a great amount of money and allowing you to get back to your normal state of affairs.

The benefits of property insurance don’t stop at property coverage. Property insurance sometimes includes liability coverage, medical coverage, loss of use coverage, etc. which can help to pay attorney fees/lawsuits, medical bills of a person who is injured in your property or by your equipment and even help pay for your living expenses if your property is uninhabitable due to a covered loss. This event might sound unlikely to you, but the ability to pay bills that come up unexpectedly are often not cheap, so it’s better to be prepared.

Property insurance is the best way to protect your property from damage and theft, putting your mind at ease so that you can focus on other matters in your life. Looking for the best property insurance policy? Why not choose our experts? Call us now for more information!