Property and casualty insurance

Property and casualty insurance protects individuals and businesses against financial loss from damage to property or liability for injuries to others, according to the National Association of Insurance Commissioners (NAIC). Property insurance includes coverage for homes, such as homeowners insurance, and autos, like comprehensive and collision policies.

Casualty insurance covers liability risks, including bodily injury or property damage claims from third parties. The average annual premium for homeowners insurance in the US was $1,428 in 2021, per Insurance Information Institute (Triple-I).

Common covered perils include fire, theft, vandalism, and weather events like hail or windstorm. Exclusions typically include floods and earthquakes unless purchased via separate endorsements or policies.

Personal property protection reimburses for belongings lost or damaged by insured events; examples: furniture ruined in a house fire or electronics stolen during a break-in. Liability coverage pays legal fees and settlements when someone sues you for accidental injuries on your premises; e.g. slip-and-fall accidents at a grocery store or dog bites at home.

Policy limits cap the insurer’s maximum payout per claim or period; most standard homeowners policies offer $100,000–$500,000 in liability coverage. Claim filing requires prompt notification to the insurer plus proof of loss documentation; insurers may require photos or police reports.

Discounts lower premiums if customers bundle home and auto coverage with one insurer–companies like State Farm report savings up to 17%, in the report authored by Your Insurance Info.