Property Insurance Coverage
Home owners and business owners who own property deal with many threats that can wipe out their property investments. Luckily, property insurance coverage is offered to property owners to hedge against the many risks that property owners endure. Many situations like fire, theft and weather can destroy property. Property insurance is used to cover any damages that may occur. There are many different types of property insurance agencies that offer different policies to their customers. Home owners may purchase a different level of property insurance than someone who owns a sky scraper. Property insurance policies are designed for many different levels of property owners.
Home owners are required to purchase home insurance when they sign up for a mortgage. In fact, many financial institutions that issue out mortgages also provide home insurance as well. However, not all home insurance policies cover a wide range of possible threats that can destroy the homeowner’s property. Flood insurance, earthquake insurance and other types of insurance may not be available with a traditional home insurance agency. Homeowners can purchase additional property insurance to cover their property in the event certain situations develop that their traditional home insurance policy doesn’t cover. Business owners also deal with the same types of threats that homeowners do.
Business owners that own large warehouses or large buildings like sky scrapers and other office type buildings can purchase property insurance for added coverage. Even though most of these types of property owners are leasing, they are still able to purchase property coverage to avoid any liabilities during a disaster. Many office buildings and warehouses are more likely to experience damages than homes are. Employees that work inside or around the property can experience certain accidents that may destroy the property. Companies may have a significant amount of valuable property that is being used for business purposes.
For example, forklifts are considered property and there are cases where forklifts are destroyed in the event of an accident or fires. Other types of equipment can be destroyed in a flood, hurricane or a tornado. Property insurance coverage is important to business owners who want to cover their assets and eliminate the risk of losing their property and equipment. If the business experiences property that is destroyed, a claim can be filed with their property insurance agency in order to receive reimbursement for the property that was lost. Business owners will pay significantly higher rates than homeowners because there is more property being covered.
Some of the biggest property insurance claims have been made recently from natural disasters and even terrorist activities. The amount of claims that were made after hurricane Katrina is staggering. Many home owners and property owners experienced heavy losses during hurricane Katrina. The World Trade Towers were completely destroyed on September 11, 2001, and the owner or owners filed a claim with their property insurance agency. Small businesses and homeowners are highly unlikely to experience a terrorist attack but having property insurance for hurricanes, tornados and other weather related disasters is a must to protect their investments.
The recent tsunami in Japan has wiped out large areas of homes and businesses. This disaster will also see an abundance of property insurance claims by those who purchased property insurance. Nobody knows when disaster will strike but everyone knows it can happen at any time. Homeowners and business owners are not the only ones the benefit from property insurance coverage. Financial institutions also benefit from property insurance because it guarantees their investment and eliminates risk. If the home owner has added property insurance and their home is destroyed, the insurance company will cover all loss, which allows the homeowner to rebuild.