Property Insurance is any type of insurance that indemnifies an insured who suffers a financial loss because property has been lost, stolen, damaged or destroyed.
Property Insurance policies must specify exactly which property loss exposures are covered – that is, the types and locations of property, cause of loss, and financial consequences that are covered. Policies must also state what parties are covered and how the value of insured property will be determined.
Covered Property Locations
An insurance policy must carefully specify the property that is covered and where the property is covered.
Many types of property insurance are designed primarily to cover buildings and personal property. Stating the location of the property covered poses certain challenges. One challenge lies in describing precisely what is and is not covered under an insurance policy that provides building coverage. Another challenge lies in the fact that buildings and personal property do not necessarily remain at a fixed location. Portions of the building might be removed from the premises for repair or storage.
Other types of property insurance policies are designed to cover personal property that often moves from place to place. Floaters are policies that are designed to cover property that “floats” or moves fro location to location. Examples of such property are camera, fur, jewelry, etc.,
Property Loss Exposures
