What is Property Insurance?
Property insurance provides coverage for property owned, in the event of damage or theft. The property covered is usually confined to an owned or rented structure, and only covers the property while in said structure. Property insurance is usually bought included with other lines of insurance such as in a business owners policy (or commercial package policy), homeowners insurance, renters insurance, flood insurance or earthquake insurance. Perils typically covered by basic property insurance include damage caused by fire, smoke, wind, hail, the weight of ice or snow, lightning, theft and more. Property insurance also provides some liability coverage in the event someone other than the property owner or renter is injured while on the property.
It is important to note that most property insurance policies do not cover water damage caused by floods, tsunamis, drain backups, sewer backups, groundwater seepage, standing water or many other water sources. Also not covered are mold, earthquakes, nuclear events or acts of war, such as terrorism.
As previously mentioned, and demonstrated by all the exclusions above, property insurance isn’t coverage that should stand alone, you will need additional lines in order to assure your business property is protected against all viable perils. Working with an Insurance Shop specialist to identify how much property coverage you need is the first step, then looking at your overall business insurance portfolio to design the best package or program that will save you money while providing the coverage you need is the next.