Property Insurance
Property insurance covers the costs of accidental losses to an insured’s property.
Many types of insurance are classified as property insurance such as the following: -
- Fire and allied lines
- Business income
- Crime
- Ocean and inland marine
- Auto physical damage
Fire and allied lines: - Fire and allied lines insurance covers direct damage to or loss of insured property. The term “allied lines’ refers to insurance against causes of loss usually written with (allied to) fire insurance, such as windstorm, hail, smoke, explosion, vandalism, and others. Examples of such policies are a dwelling policy and commercial property policy.
Business income insurance: - Business income insurance covers the loss of net income or additional expenses incurred by a business as the result of a covered loss to its property. For example, when a business has a serious fire, it might have to close until repairs to the building are made and personal property is replaced because of which there shall be loss of net income. This insurance pays the insured for such loss of income or additional expenses that the insured incurs.
Crime Insurance: - Crime Insurance protects the insured against loss to covered property from various causes of loss such as burglary, robbery, theft and employee dishonesty. Coverage is provided for money, securities, merchandise and other property under this insurance. Individuals can avail this cover under Homeowner’s policy and business organizations have to go in for separate insurance.
Ocean marine insurance: - This includes hull insurance (which covers ships) and cargo insurance (which covers the goods transported by ships).
Inland marine insurance covers miscellaneous types of property, such as movable property, goods in domestic transit, and property used in transportation and communication.
Auto physical damage insurance: - covers loss or damage to specified vehicles owned by the insured and sometimes covers vehicles borrowed or rented by the insured. Auto physical damage is generally considered to mean loss or damage to specified vehicles from collision, fire, theft, or other causes.
FUNDAMENTALS OF INSURANCE
