Insurance is a legal agreement between you and the company that ensures to provide aid on a specific financial loss. And this financial loss could be related to your life, car, home, or travel. As mentioned earlier in the detailed article on best insurance policies and companies, there are different types of insurance. And “property insurance” is one of the most popular types of insurance. There are also different kinds of property insurance as well, like Homeowner’s insurance, Renter’s insurance, co-op insurance, and Landlord Insurance.
Property insurance is a type of insurance according to which an insurance company agrees to provide you financial aid on any damage that happens to the property you have insured for.
Types of Property Insurance
There are different types of property insurance besides commercial property insurance and residential property insurance. Some of these are:
- Vacant Property Insurance
- Landlord Insurance
- Home Owner Insurance
- Renters Insurance
- Commercial Property Insurance
1- Vacant Property Insurance
Vacant property insurance is a type of insurance that provides financial coverage for vacant or unoccupied property. It is usually for those people who are living out of the country away from their property to cover the financial loss that could happen because of any unexpected damage.
2- Landlord Insurance
In landlord insurance, the property owner insures his property that he’s not the resident of, to get the personal liability coverage. Like if anything happens to the tenant in your house, and he sues you for that, you’ll get coverage for that. And also this type of insurance (Landlord Insurance) will protect you against storm or fire damage.
3- Home Owner Insurance
Just like landlord insurance, homeowners insurance protects you against any internal or external damage that happens to your building or house. Although it’s covering most of the cases, it won’t cover some natural disasters like war or living in flood or earthquake areas.
4- Renters Insurance
Renters Insurance is for the tenants who are living in someone’s house, and it protects them against specified personal or possession damage like theft, being fallen due to broken stairs, or any other such scenario. In the United States, the average cost of renters insurance is as low as $10 monthly.
5- Commercial Property Insurance
In commercial Property insurance, any damage to your commercial property (office, shop, restaurant, etc.) by theft, natural disaster, or fire is covered by the company. It’s very essential to protect you against any loss that could potentially happen.
Property Insurance Policies
Different Property insurance policies protect the owner of the land, house, or commercial property against any damage or loss by fire, theft, or natural disaster. And these policies could be specified or all risk management.
Replacement Cost: This policy covers the cost of the property or the replacement of the property by the exact value after deduction.
Extended Replacement Cost: This will pay you more than the coverage if the cost of constructing the same property has gone up.
Actual Cash Value: It will pay you the actual cost of the property if the property is 5 years old, it’ll give you value over 5 years old property, not the new one.
Property Insurance Companies
There are a number of property insurance companies providing services on local, state, and national levels. A few famous insurance companies are:
- Progressive Corporation
- State Farm
- Nationwide Mutual Insurance