What is Property and Casualty Insurance?

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Because your stuff is as important as yourself.

Many of the types of insurance with which you’re familiar fall into the category of property and casualty insurance, or P&C insurance. Property insurance protects the things you own in case they are damaged or lost, while casualty coverage protects you if you’re found responsible for injuring someone or damaging their possessions.

Insurify offers auto insurance quotes comparison whether you’re on the hunt for a new policy, getting your first car insured, or just curious to unlock discounts based on your driver profile. And what’s more important in the P&C universe than top-notch car insurance coverage?

Before (or after!) you browse Insurify to get the best car insurance quotes tailor-fit to your profile, read on to discover which other types of property and casualty insurance are out there. Let us walk you through the basics of your insurance journey…because coverage doesn’t have to stop at your car.

Types of property and casualty insurance

Many P&C policies include some level of both property and casualty coverage. Here are some of the most common property and casualty insurance policies.

Auto insurance

Car insurance usually provides both property and casualty protection. For example, if your car is stolen then the property part of the policy would come into play, but if you were in an at-fault accident that resulted in someone’s getting hurt, the casualty part would kick in. Nearly all states in the US require drivers to carry some level of auto insurance; the exact requirements and coverage limits vary.

Homeowners insurance

Like auto insurance, homeowners insurance generally has both kinds of coverage. You’re likely most familiar with the property insurance aspects, like protection from fires and hurricanes. However, homeowners insurance also can provide casualty coverage. If your mail carrier slipped on your front porch and broke her leg and you were considered liable for the accident, your homeowners policy could protect you.

Condo insurance

Condo insurance, unlike homeowners insurance, protects only the interior structure of your home. Otherwise, it’s quite similar to homeowners insurance and generally has the same sort of liability coverage, making it both property and casualty insurance.

Renters insurance

If you don’t own your home, renters insurance can give you a similar level of protection. Renters insurance doesn’t cover the building itself (since that’s the landlord’s problem); rather, it covers the personal possessions you keep in your home. It also provides liability protection similar to that of homeowners insurance.

Landlord insurance

Landlord insurance is a specialized type of homeowners insurance policy for anyone who owns rental properties. In addition to the typical property damage and liability coverage of a homeowners policy, landlord insurance also covers things like lost rental income if severe damage forces you to leave the house vacant while it’s being repaired.

Umbrella insurance

Each of the above types of P&C insurance provides some level of liability protection. However, that liability coverage is capped at a certain amount. In extreme circumstances, you may end up with liability expenses that greatly exceed your basic insurance coverage. Umbrella insurance provides extra coverage on top of your basic auto, homeowners, or other insurance policy.

Specialized insurance

Certain valuable possessions such as boats, snowmobiles, RVs, golf carts, and the like can be protected by purchasing a specialized insurance policy. These policies generally cover both property concerns (e.g., your boat sinks) and casualty concerns (e.g., you run over someone with your snowmobile).

Types of non-P&C insurance

Property and casualty coverage is extremely important, but it’s not the only kind of insurance you’ll need. Here are two of the most common types of insurance that don’t fall under the property and casualty umbrella.

Life insurance

While property insurance protects you in case your possessions are lost, life insurance protects you in case your life is lost. It helps to ensure that your family will have something to live on after you’re gone. Life insurance comes in two basic categories: term life insurance, which is a “pure” life insurance policy that protects you for a certain length of time, and permanent life insurance, which combines life insurance with an investment component and can go on indefinitely.

Health insurance

Like life insurance, health insurance protects you in case something goes wrong with your body. However, unlike life insurance, health insurance pertains to injuries, illnesses, and conditions that occur over the course of your life. Because healthcare costs can be shockingly expensive, even for minor ailments, health insurance is a must regardless of how healthy you are.

Each of these different types of insurance comes in a wide range of coverage options, deductibles, and premiums. If you want to get a good deal, it’s important to compare rates both when you originally purchased the policy and when your policy comes up for renewal.

Wendy Connick is the founder and owner of Connick Financial Solutions, a provider of tax and bookkeeping services and a QuickBooks Online Certified ProAdvisor. A long-time freelance writer, she specializes in business and finance articles on subjects including taxes, investing, and retirement. Wendy is an Enrolled Agent (EA), the only federally-licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS. She is a member of the National Association of Enrolled Agents and a certified volunteer for VITA (Volunteer Income Tax Assistance), an IRS-sponsored program to provide free tax help for low-income individuals and families.