What Types of Property Insurance Should I Consider Buying?

August 23rd, 2010

the programmer and a computer image by Andrey Andreev from Fotolia.com Freelance designers, for example, should consider insuring their computers against equipment failures and other disasters. Property insurance is one of the most important things you can purchase, whether you are a homeowner, renter, business owner or simply a self-employed contractor. Property insurance assures that your assets are protected in the event of a disaster or unexpected event. There are about as many different types of property insurance as there are accidents and disasters, so it is helpful to know what is available and what kinds of contingencies you should plan for. Generally, when considering the various types of property insurance you should consider what is being insured, what kinds of damage can happen to it and the cost-to-benefit ratio of buying insurance for those situations. Your insurance agent should be able to help you determine what insurance is necessary and answer any specific questions you might have.

Homeowners Insurance

This is a basic and legally required type of insurance, covering a house and most of the things inside it. Typical homeowners insurance policies will cover the actual structure of a house in cases of fire and other types of physical damage. They also cover the items within the home, as well as things surrounding the home, such as cars and external furnishings. Typical homeowners insurance does not cover things like flooding damage, which is why it is so important for homeowners to consider the area they live in when buying insurance.

Renters insurance is very similar to homeowners insurance, except that it covers the living situations of people who do not own their own properties. Renters insurance policies typically do not cover the structure of a home, as that should be covered by the property owner. These types of policies generally cover the specific items within the home belonging to the renter and his or her family. Renters insurance may also cover things like the cost of living during a relocation due to fire or other disaster.

Typically, businesses buy property coverage as a part of an overall package of insurance covering liability policies as well as property. Property insurance for businesses will cover both actual buildings, as well as equipment used in the business. There is a vast range of things that can be covered, but generally business insurance will guard against the usual types of disasters that can occur, as well as equipment breakdowns. The following sections cover various types of general business property coverages.

This insurance covers repairs and replacements that may be necessary in the event that the boiler and other heating and cooling equipment in your business breaks down or otherwise becomes unusable. These policies may cover the expenses incurred due to being unable to conduct business during necessary repairs.

This type of insurance policy specifically covers damage to glass, such as windows, especially in storefronts and the like.

These types of policies cover properties while they are in the process of being constructed. Such a policy is specific to natural or other unexpected disasters, such as fires or hailstorms that damage or destroy a building while it is under construction.

This is a particular type of contingency insurance that can be added to generic property insurance policies. It covers the costs of actually removing all the broken stuff from a property after a disaster such as a fire or storm. The general property insurance covers the actual costs related to repairs, but not the removal of debris.

If you are a small business owner or independent contractor, you may want to consider buying coverage for your own tools or other equipment. These policies may fall under the scope of general property insurance if you have such a policy. However, contractors or other freelance workers may not have any type of insurance related to their work. Equipment policies will cover the costs of repair or replacement of equipment, as well as loss of income due to equipment failure.