Do You Need These Different Types Of Property Insurance?

Sherri Ramos

Property insurance encompasses a range of different insurance policies that cover physical property (as opposed to potential liability risks). Because there is so much physical property that people need to protect, there are many different types of property insurance. Here are some common types of property insurance policies that you may need if you own the relevant property.

Car Insurance with Comprehensive and Collision Coverage

Car insurance policies are multifaceted policies that include a combination of property insurance, physical protections, and liability protections. 

Within a car insurance policy, the two main property protections are comprehensive coverage and collision coverage. The former insures against non-collision incidents that cause damage to your car, while the latter insures against multi-vehicle collisions that cause damage. 

Most states require drivers to carry auto insurance that meets minimum liability coverage requirements, but the property protections of comprehensive and collision coverage normally aren't required by state law. 

Whether you need these property protections usually depends on the value of your vehicle. If you have a car that would cost a lot to replace, then you should carry comprehensive and collision coverage. If you have an inexpensive car that you could personally afford to replace, you might be able to forgo the two protections.

Home Insurance with Dwelling, Structure, and Personal Property Coverage

If you own a home, you should have a home insurance policy. Like car insurance policies, home insurance policies typically provide a combination of property and liability protections. A few of the more important property protections within a home insurance policy are dwelling coverage, secondary structures coverage, and personal property coverage.

Dwelling coverage helps protect your house itself against damage and destruction. The dwelling coverage in most policies will guard against risks like fire, theft, and vandalism, and additional perils are covered in many policies.

Secondary structures coverage extends the protections afforded by dwelling coverage to non-primary structures on an insured lot. For a single-family house, these might include a fence, gazebo, detached garage, or shed. What other structures this type of coverage protects will be clearly defined within a home insurance policy.

Personal property coverage provides protection for your personal belongings that you keep in your home. This coverage might insure everything from socks and toothbrushes to computers and fine art. Protection is sometimes limited to when personal property is in your home. Other times, policies insure personal belongings no matter where they're located.

To learn more, contact property insurance providers.