Property Insurance


DEFINITION of 'Property Insurance'

A policy that provides financial reimbursement to the owner or renter of a structure and its contents, in the event of damage or theft. Property insurance can include homeowners insurance, renters insurance, flood insurance and earthquake insurance. Personal property is generally covered by a homeowners or renters policy, unless it is of particularly high value, in which case it can usually be covered by purchasing an addition to the policy called a "rider". If a claim is filed, the property insurance policy will either reimburse the policyholder for the actual value of the damage, or the replacement cost to remedy the damage.

BREAKING DOWN 'Property Insurance'

Perils typically covered by property insurance include damage caused by fire, smoke, wind, hail, weight of ice and snow, lightning, theft and more. Property insurance also provides liability coverage in case someone other than the property owner or renter is injured while on the property, and decides to sue.

Property insurance policies normally do not cover water damage caused by floods, tsunamis, drain backups, sewer backups, groundwater seepage, standing water and many other water sources. They also may not cover mold, earthquakes, nuclear events or acts of war, such as terrorism and insurrections.

  1. Forced Place Insurance

    The insurance that a lien holder places on a property, to provide ...
  2. Uninsurable Peril

    Events or situations that insurance coverage is not available ...
  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty ...
  4. Hazard Insurance

    Insurance that protects a property owner against damage caused ...
  5. Transfer Of Risk

    The underlying tenet behind insurance transactions. The purpose ...
  6. Named Perils Insurance Policy

    A home insurance policy that only provides coverage on losses ...
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