Why Is Property Insurance Important?

Property insurance exists to protect these items in case something disastrous happens to them. Although you can get insurance on almost everything that exists, there are a few main types of property insurance policies that are commonly owned in the United States.

Below, we’ll take a look at these popular plans and how property insurance benefits you.

You can insure all sorts of things to protect them from possible financial loss. At Clovered, we focus on property insurance, which includes home, auto, flood, and renters insurance. We protect the property and stuff you own.

Homeowners insurance is a common form of protection that gives home buyers peace of mind. It protects a lot more than just your house, though.

A homeowners policy covers the structure of your house and your belongings inside. It also provides personal liability protection. If someone sues you after sustaining an accidental injury on your property, your homeowners insurance can cover their medical bills and your legal expenses.

If your house is rendered uninhabitable by a covered peril, your homeowners insurance will also cover what it costs to live somewhere else while your home is being rebuilt or repaired. This is called loss of use coverage.

There’s a specific type of property insurance policy if you live in a condo, unsurprisingly called condo insurance. It’s similar to a typical homeowners policy in that it provides protection for personal liability, loss of use, and your belongings.

Condo plans don’t have much, if any, dwelling or other structures coverage because if you live in a condo you don’t own the building you live in. You only own your unit, so you’re not responsible for protecting anything structurally outside of it.

This is beneficial because, depending on your location, condo insurance is often cheaper than homeowners insurance because you don’t need to insure as much.

Both property insurance plans we’ve mentioned so far apply to a place you’re residing. Landlord insurance will protect a property you don’t live in. If you’re renting a place you own out to tenants, it’s arguably even more important to make sure it’s protected with a policy since you’re not there all the time to look after things.

Having someone living on your property is a greater liability risk. A landlord policy will protect you financially from accidents and injuries your tenant or their guests might suffer, as well as provide dwelling and loss of rental income coverage.

There are several types of auto insurance policies available to protect you, your car, and others while driving. While only one type is required by law, liability insurance, the other plans are very commonly owned since cars are such a central feature in most peoples’ lives, and we’d be in a tough spot without our car if something went wrong.

Collision coverage covers damages to your car if you get in an accident whether you’re at fault or not. Comprehensive insurance covers your vehicle from damages it could sustain other than in a crash. This can include falling objects, vandalism, fire and more. These two coverages are often bought together and can be referred to as “full coverage.”

Liability insurance, the type of car insurance you’re required to have by law, provides financial protection for other drivers on the road in case you cause an accident. Many people wouldn’t have the money to pay for the repairs to someone else’s car if you damage it. So, the government-mandated insurance to avoid issues this could cause.

Flood damage is incredibly costly and happens more often than you’d think. Any home can sustain flood damage, even if it’s outside of a federally designated flood zone. Protection from floods doesn’t fall under a homeowners policy, so it’s important to seek out a flood plan, too. 

Flood insurance is written either by the U.S. government or a private company. It protects the structure of your house and your belongings from rising external sources of water. As we touched on earlier, your mortgage lender will require you to purchase a flood insurance policy if your home is in a high-risk flood zone.

All the property insurance policies we’ve mentioned are designed to give you peace of mind so you don’t need to worry about restoring your life after a disaster. Nevertheless, it’s still important to get a good deal when buying coverage.

The Clovered website, including our convenient quoting platform, is designed to help you find good coverage at the best price. You can compare quotes from the nation’s top providers of home, auto and flood insurance.