Personal Insurance
Property insurance deals with the financial consequences
associated with losses caused to property of families and individuals. The financial
consequences of property losses include reduction in the value of property due
to the loss, consequential expenses like loss of income resulting and
subsequent increased expenses like rent paid while the property is repaired. Property
includes:
Real property: A
house and the land on which it was constructed, items embedded in the land like
the foundation and underground pipes and separate structures on the land like a
garage or a storage shed.
Personal Property: Includes high value personal property
like jewelry and with unusual intrinsic value like curios; the contents of the
dwelling including furniture and clothing, business personal property like
computer equipment and printer, and automobiles, motor vehicles, sailboat,
trailers, watercraft and aircraft.
Liability insurance:
The insurance pays for money damages arising due to the
breach of civil and criminal laws. Liability losses arise due to tort liability
including libel, assault, trespassing and nuisance; contractual liability and
statutory liability. The financial consequences
arise due to the liability declared by the court of law whenever the defense is
not successful. The cost of investigation and defense also add up as the financial
liability.
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