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Property and Casualty Insurance:
What is it?
This page includes an overview of Property and Casualty Insurance.
A."Property Insurance" is designed to combat the risk that a person or business may suffer financial loss when something it owns is damaged.
B.Property insurance takes two forms: "Specific" insurance and "Blanket" insurance.
1.Specific - covers a specific item identified in the policy declarations.
2.Blanket - covers a general range of items and can include property at any location rather than only at one particular location.
C.Almost anything can be insured, including
1.Buildings; i.e. real property
2.Tangible business/personal property
3.Intangible business/personal property
D.Property is insured up to a certain extent.
1.The declarations in the policy determine what is called the "policy limit," also referred to limit of coverage, liability, or insurance.
2.The insured can never collect more than the policy limit.
3.For items that are difficult to value (like artwork), the insured and the insurer agree to a "valued" or "agreed amount" contract, which is used to determine the value of the specific property at the time of loss.
E.Valuation of the property is determined in several ways, including:
1."Actual Cash Value" - the most common valuation method is calculated by taking the replacement cost of the property less the cost of depreciation.
2."Repair Cost" - the insured my be reimbursed on the basis of the item's repair cost.
3."Replacement Cost" - in which the insurer agrees to pay the replacement cost of the loss regardless of depreciation.
F."Casualty Insurance" is a blanket term that includes a wide variety of coverage from liability insurance to workman's compensation to bonding.
1.Liability insurance is designed to protect the insured from financial loss arising from liability claims.
1.For example, liability insurance may cover a customer slipping and falling on the show room floor of an electronic appliance store.
2.Workman's Compensation policies are designed to cover an employer's obligations to an employee if the employee makes a claim under Workman's Compensation laws.
1.For example, a Workman's Compensation policy will cover the cost of a claim to an employee if the employee broke an arm performing job duties.
3.Fidelity Bonding ensures an employee will either act honestly and faithfully on the job.
4.Surety Bonding ensures someone will perform a particular job or pay a specified payment.
While there are so many options available, Value Insurance Agency Inc. can help your business navigate through the options and ensure you get the insurance that is right for you at the right price.
