What Is Property and Casualty Insurance?


Quick Answer

Property and casualty insurance offers protection against property losses to the policy holder and legal liability against expenses arising from damage to the person or property of others, according to Investopedia. This type of insurance includes automobile, home, wind, flood and umbrella policies.

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Full Answer

Automobile insurance commonly covers the policy holder, his spouse, other family members and anyone legally permitted to drive the car under the policy, says Investopedia. The policy covers medical expenses related to injury to the person covered after an accident and any damage the vehicle receives. It also includes liability coverage for expenses arising from bodily injury others incur and damage to property directly or indirectly due to the accident. Premiums depend on the driver's record and the type of car.

Homeowner's insurance typically includes protection for the physical structure of the house, personal property and different levels of liability, adds Investopedia. There are various types of homeowner's insurance providing levels of protection according to the policy holder's needs, the location of the home and other factors. Wind and flood insurance policies offer protection against natural events that most homeowner's insurance policies don't cover. Umbrella policies offer additional coverage that takes over when underlying insurance policies have reached their coverage limits. Policy holders can add such coverage to any type of insurance to protect assets.

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