Property and casualty insurance is a broad term to describe various insurance policies that help you cover personal property and offer liability coverage protection. Popular property and casualty insurance coverage includes automobile insurance, & homeowners insurance which are broken down below.
Automobile Insurance
Automobile insurance falls under provincial jurisdiction and rules vary within each province. It is one of the most popular property and casualty insurance. At a minimum, you must insure your automobile for $200,0000 third-party liability coverage and basic accident benefits coverage.
Mandatory Coverage
Accidental Benefit Coverage – Accident Benefits coverage provides monetary and medical benefits to parties in a collision. The benefits could include medical care, income replacement, rehabilitation, etc. Accidental benefits are provided at no fault basis and are available regardless of who was at fault. In case of death, the coverage would cover funeral expenses and pay out a survivor benefit. This insurance is not mandatory in Newfoundland and Labrador.
Third Party Liability Coverage – This coverage is a bit more extreme and involves if the driver of the vehicle injures or kills someone at the fault of the driver. You must have a minimum of $200,000 in Third Party Liability coverage. This type of coverage may also entail additional coverage called Direct Compensation Property Damage.
Direct Compensation Property Damage – This type of policy would cover damages to an insured vehicle and to any property inside the vehicle. Direct compensation property damage insurance is mandatory in Ontario, Quebec, Nova Scotia, PEI and New Brunswick.
Uninsured Automobile Insurance – This is a mandatory part of your car insurance. It protects you if you’re involved in an accident with someone who has no insurance or a driver who commits hit and run.
Collision Coverage
Collision Coverage is an optional coverage except in provinces of Saskatchewan and Manitoba where it is mandatory. Collision coverage is responsible to pay for the cost of repairing or replacing a vehicle following a collision. Also known as upset coverage, it is optional as the cost of insuring older vehicles might be higher than the vehicle insured. This type of coverage has a deductible which is the amount paid by you towards the cost of repairs. The higher the deductible, the lower the premiums.
Comprehensive Coverage
Comprehensive coverage protects your car against loss or damage on matters that do not involve collision. It’s one of the most expensive type of property and casualty insurance. Comprehensive coverage will replace or repair your vehicle if it’s stolen or damaged and it typically covers things such as fire, vandalism, falling objects, hail, etc. This type of coverage is common if you’re financing or leasing your car as your lender might make it mandatory.
Home Insurance
Home insurance one of the most recommended property and casualty insurance coverage your home might be your biggest investment. Home insurance protects your home and its content in case of theft, loss or damage. There are three types of homeowner’s insurance policies, Standard, Broad, Comprehensive.
- Standard Home Insurance – Standard Home Insurance also known as “Basic” or “Named Perils covers against damage to dwellings and it’s valuables”. A peril is a chance event that is unexpected and accidental. With a standard policy, types of perils that might be covered are fire, lighting, hail, theft, water damage, explosion, vehicle impact, etc.
- Broad Home Insurance Policy – Broad coverage is flexible coverage that covers loss or damage due to a set list of perils. The list of perils under a broad home insurance policy are standard throughout the industry but if you notice that you’d like to be covered for additional perils, you can choose to add it at an extra cost. Keep in mind that with broad home insurance policy, the contents coverage are left on a named perils basis.
- Comprehensive Coverage – This type of policy would cover potential risks to the dwelling and the contents inside of it. Keep in mind that these type of policies may have un-insurable perils that may not be covered. It’s important to read the policy document in order to give yourself a peace of mind. Property and casualty insurance is often incorporated in addition to life insurance.