What is Property and Casualty Insurance

Insurance offers financial protection, helping you in times of need. One excellent and necessary type of insurance is property and casualty insurance. Otherwise known as P&C insurance, this coverage protects your belongings, including your car, home, and pets, and offers liability coverage as well.

In this way, you can enjoy protection in cases where you're held legally responsible for accidents that cause injuries to other people or damage their properties. Here we offer a basic and easy-to-understand rundown of P&C insurance, the ins and outs of this insurance, and how you should select the ideal plan:

How Does P&C Insurance Work

P&C insurance is a blanket term referring to a variety of different standard insurance policies covering both liability and personal property damage. Let's take a deeper dive into the meaning and working of P&C insurance:

What is Property Insurance?

Property insurance refers to coverage for your personal belongings. Based on the type of insurance policy you choose, property insurance may differ.
For instance, the renter's policy determines your property as personal property. In contrast, it is termed as Coverage C, and it applies to your stuff if disastrous events occur.

Property insurance is typical for business owners seeking protection from vandalism and theft.

What is Casualty Insurance?

On the flip side, casualty insurance refers to insurance that provides coverage in cases you're held legally responsible. Typically it occurs as a result of damage you cause to someone else's property.

Casualty insurance is another popular insurance policy among small businesses looking to ensure protection from liabilities.

What Types of Property Does This Cover

Here are a couple of cases property and casualty insurance may come into play:

  • A property ends up getting vandalized and damaged
  • Extreme weather hurt your property
  • A visitor fractures their leg on your property as a direct result of your negligence
  • A visitor sues you after they were injured in your home

What does Property and Casualty Insurance Include?

Property and casualty insurance is typically combined for single policies.The top property and casualty insurance are as follows:

  • Car insurance
  • Condo insurance
  • Power sports insurance
  • 'Toys' insurance
  • Landlord insurance
  • Renters insurance
  • Business insurance
  • Marine insurance

What Can I Do with a P&C Insurance License?

Property and Casualty license allows agents to sell personal as well as commercial insurances. Let's talk about these down below:

Personal Insurance

  • Homeowners insurance offers liability and property protection as a result of residential principal property occupancy and ownerships.
  • Dwelling insurance offers property protection for personally-owned residential dwellings.
  • Personal Auto insurance offers liability insurance for losses due to the non-business utilization of vehicles.
  • Personal insurance plans for a property like jewelry, cameras, and personal umbrella liability insurance spike up personal auto liability and homeowner coverage.

Commercial Insurance

  • Commercial property insurance offers coverage for residential business property lacking the ranking of a residence.
  • Commercial general liability insurance offers protection to you and your business from legal liability exposures.
  • Businessowners coverage insurance combines the different coverage present under liability, commercial property, and automobile insurance ideal for smaller eligible businesses.
  • Commercial umbrella liability insurance offers an extra layer of liability protection and supplements your current coverage.
  • Professional liability insurance, including medical malpractice and commercial crime for losses as a result of theft.

Choosing Your Commercial Property and Casualty Insurer

Regardless of whether you're a business owner or a homeowner, you seek insurance to protect yourself from unexpected losses.

However, selecting the best plan requires diligent research and comparison. To save you time, we've made an easy-to-follow guide to connecting with the best insurer:

  • Assess your insurer's financial health before purchasing a policy.
  • Make sure your desired insurance boasts a license in states they offer policies and coverage.
  • Look for an insurer that offers a plan that perfectly matches your business needs. A plus is that they boast in-depth industry knowledge.
  • Check the cost of the insurance plan to avoid overpaying or matching with a low-quality policy.
  • Read reviews to get an insight into the insurer's service and satisfaction rates.
  • Talk to past clients to understand the insurer's reputation, as well as their claim handling capabilities.

Property and Casualty Insurance News

Despite being termed as a slow-moving and challenging industry, insurance remains one of the leading global industries. This lucrative industry produces more than $5 trillion in revenue yearly. Not to mention, the insurance industry has grown more robust in the past two centuries after suffering from $45 losses.

Simultaneously, umbrella and excess liability insurance rates went up to 14%, directors and officer's liability reaching 11.6%, and commercial property spike up to 8.6%.Last but not least, large accounts saw increases that went up to 8.3%, whereas small and mid-sized accounts reached only 6.3%. Overall, it means that property and casualty insurance is rising as we know it.

What is the Difference Between P&C and Life Insurance?

Life insurance refers to contracts that cover financial losses occurring due to the death of the insured person. Life insurances are typically long-term and boast a diverse variety of policies. It ranges from simple life policies offering a payout upon the policyholder's loss of life to more exciting ones that boast an insurance component within the policy.

On top of that, life insurers provide annuity products as revolutionary retirement solutions. In fact, in the US, more than 50% of life insurance premiums result from annuity-type products. Moreover, you can enjoy accident and health policies from certain life insurers as well. The leading companies offering state-of-the-art insurance plans entail AFLAC (AFL), MetLife, and so on.

On the flip side, P&C insurance contracts offer insurance from casualties like harm to your property as a result of natural devastations and legal liabilities, as well as liability risks. Plus, property and casualty insurance is commonly called non-life insurance. These may be short-term or long-term, also called short-tailed or long-tailed, depending on your needs and wishes.

It is available in a plethora of enticing packages. Companies like AIF, ACE, and so on offer stellar quality insurance plans to policyholders.

To Sum it Up

Property and causality (P&C) insurers refer to companies offering well-crafted coverage on your assets and liability insurance for injuries, as well as the harm that you bring to others or their property.

These cover various things like professional liability insurance, auto insurance, marine insurance, and home insurance. Typically, customers have to pay differing insurance premiums to P&C insurance depending on what coverage they desire.

Consider receiving quotes from various insurers to find the ideal coverage that matches your lifestyle and future needs.


Thinking of Refinancing Your Home?

All material is presented for informational and educational purposes only and should not be construed as individual financial, investment, or legal advice or instruction. ZeroMortgage does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by ZeroMortgage. ZeroMortgage, its affiliates, and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action. ZeroMortgage does not provide tax advice. Please contact your tax adviser for any tax related questions.

This page last updated: March 21, 2022