If you own or rent property, you should make sure your dwelling is adequately protected with property insurance. To receive the best coverage for your investment, it’s important to ask your insurance agent the right questions about available coverage options. Here are a few answers to frequently asked questions about property insurance.

Property Insurance FAQ

What Is It?

Property insurance provides financial protection to owners and renters of a structure and its contents. It can include homeowners, renters, flood, and earthquake insurance. If a policyholder files a claim, the insurer either reimburses for the value of the damage or pays the replacement cost.

What Are the Types of Property Insurance?

There are three main types of property insurance. Replacement cost coverage pays the cost of repairing or replacing your property, regardless of what you paid for it. The coverage is based on the cost of the replacements items, not the actual cash value of them. Actual cash value coverage pays the replacement cost but factors in depreciation. Extended replacement cost pays over the coverage limit to replace damaged property.

Is There a Difference Between Named Perils & Open Perils Coverage?

Named peril policies include specific risks that policyholders want covered under their insurance. They are typically the least expensive option because not every peril that could cause a loss is covered. Open peril policies provide more comprehensive coverage, protecting against all hazards except those listed as exclusions in the policy.

What Is Covered by Property Insurance?

Property insurance typically covers any damage caused by smoke, fire, hail, wind, or lightning. Most property insurance policies do not include losses due to earthquakes or floods; policyholders must purchase a separate policy for these perils. This insurance also includes liability coverage, which pays legal fees if anyone is injured on the property and decides to sue.

Understanding property insurance is simple with professional help. The team at Integrity Insurance Solutions in San Marcos, TX, will work with you to customize policy options that work best for your situation. Give them a call at (512) 396-2211 to speak to an agent. You can also visit them online to learn more about their insurance products.