Home insurance and property insurance might sound similar to you. Actually, they aren’t!
Home insurance protects your company for any damages caused due to events including storm, fire, floods, and others. The entire cost of repairing or replacing the damage caused to your home contents such as the garage, swimming pool, and other permanent fixtures are all provided complete cover under this policy.
The best part is, a home insurance policy also covers the cost of legal liability for any injury to those visiting your home.
If you start to compare property insurance with home insurance, you would notice that the former is a first-party coverage. The first part is the one to be insured and the second party is the commercial property insurance company.
Importance of Property Insurance
A property insurance policy protects the physical goods of the property and provides complete cover in case of any theft, fire or other mishaps. You can even get empty property insurance too.
It provides complete coverage and protection for all risks and is also named as a risk-coverage policy, offering protection against perils as mentioned in the policy.
Commercial property building insurance
offers a combination of numerous covers under a single policy. It may also include:
The renter’s policy
Office package policy
Flood and insurance policy.
Some of the personal liabilities as well.
Confused between the terms as both of them sound quite similar? Let’s discuss them in detail:
What Identifies Property Insurance?
Property Insurance policy offers commercial property building insurance, insurance for homes and can even be found on boat and automobile policies. In case the boat or automobile driver faces any damage to their vehicle, they get it covered under the policy.
This shows that property insurance is not just confined to homes.
What Identifies a Home Insurance Policy?
With a home insurance policy, you get more than one type of coverage. It just not only offers the property coverage but also includes liability coverage. There are different situations such as if your house catches fire, your insurer is going to pay the amount required for maintaining and repairing it back.
Talking about the sections of the commercial property insurance, you have different sections defined on the property insurance. The liability section on the policy is also known as the third party section and the first party section is known as the property section.
Your chosen cheap commercial property insurance provider is going to pay the amount of recovery or maintenance in case of any damage situations mentioned on the policy.
Comparing Property Insurance and Home Insurance
Home insurance protects your house, it offers more cover and protection as compared to property insurance. The latter one protects your home from natural calamities.
Home insurance not only offers cover for this, but also offers additional protection for detached garages as well as the backyard sheds, and protects your personal property as well. As it offers liability cover too, it is considered to be more secure.
Let’s discuss and compare them with respect to the following features:
A property insurance policy does not offer cover for personal contents of your property, including furniture, clothing, appliances and other items. Whereas, a home insurance policy has this cover included too.
Unless you add this cover separately in your property insurance policy, you cannot have access to it directly. Purchasing the policy with this cover entitles you to enjoy complete recovery in case of any damage to your home items and personal belongings.
Both of these policies cover structured related to the main house, including decks and garages. A home insurance policy also provides cover for detached structures as garages, swimming pools, barns, and shreds. All the electrical, heating and plumbing systems are fully covered by both of the policies.
A property insurance policy does not offer liability coverage that is offered under the home insurance policy only. The liability cover states that if any visitor suffers an injury while on your property, he will be offered cover for that loss. A standard property insurance policy doesn’t offer liability coverage unless you purchase it separately on your own.
Temporary Living Expenses
A home insurance policy offers cover for temporary living expenses too, also known as “loss of use” cover. In any case, your house is damaged or is uninhabitable during the repairing process, you will be fully covered for it. To avail of this cover, your home must suffer damage first, in any form such as fire or any natural calamity. A standard property insurance policy does not offer cover for this and you have to add it on your own if you want access to this cover.
Perils are events that lead to huge losses. With respect to the covered perils, both of the policies differ. In the case of property insurance perils cover, it provides protection for specific cover losses as mentioned in the policy.
A home insurance perils cover provides coverage for all the perils of your home and complete protection against all the damages, except the ones that are not mentioned on the policy.
Before choosing any of both policies, you must make sure to thoroughly go through the perils to be covered that are mentioned in the policy. This gives you a complete idea of what covers are you going to get at the end and what to expect in the policy.
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Home and property insurance are both different terms, with different extent of cover features. While one may offer liability cover, the other may not. It’s a misconception to think both of them as the same policies.
Closely examine both policies for a better understanding of what they are about and how to get the cheap insurance quotes for your needs.