What Types of Insurance Cover Property Damage?There are two main types of insurance that cover property damage. Homeowners insurance covers damages to your home and personal property, while commercial property insurance covers damages to businesses and their contents.
Commercial vs. Residential Property Damage Claims
- Commercial property damage insurance policies typically have higher coverage limits than residential policies as businesses often have more expensive property and equipment than homeowners.
- Commercial policies may cover business interruption losses, while most residential policies do not. Business interruption coverage can be vital for companies that suffer damage to their premises, as it can help reimburse them for lost income and expenses incurred during the repairs.
- For both, documentation will be crucial in getting the total amount of reimbursement you are entitled to. When filing a property damage claim, it is crucial to keep track of all expenses incurred as a result of the damage and any lost income if you are a business owner.
Types of Property DamageThere are many different causes of property damage, but some of the most common include:
- Fire - One of the most destructive forces, fire can cause complete destruction of a property.
- Water Damage - Water damage can be caused by various things, including flooding, leaks, and storms.
- Wind Damage - High winds can cause damage to roofs, windows, and siding.
- Hail Damage - Hail is one of the leading causes of property damage claims. It can cause extensive damage to roofs, windows, and siding.
- Theft or Vandalism - Break-ins and vandalism can cause significant damage to both external and internal areas of the property.
- Collision Damage - Car accidents and other unforeseen collisions may happen at any time and cause significant damage to property.