Thursday, 8 October 2015

Property and Liability Insurance

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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