Home and Auto Insurance is purchased by individuals in order to gain protection for their personal property. By purchasing home and auto insurance, policy holders have gained a promise by the insurance company that if they become victim to a certain type of hazard or other incident then the insurance company will pay to rectify the problem. The amount paid to the policy holder will either cover the costs completely or partially.
When it comes to a basic policy for auto Insurance the policy will include several different coverages. Liability coverage for bodily injury pays for the injuries that the policy holder inflicted upon another individual due to their negligent driving. Property damage liability covers the costs of damage done to another vehicle or piece of personal property caused by the vehicle of the policy holder. Every state within the United States requires automobile drivers to possess liability for both bodily injury and property damage. The other types of coverage that can be had in an automobile policy will pay for the damage of the policy holders car, these coverages are referred to as collision and comprehensive.
When talking about home insurance policies, the primary coverage within these policies covers the protection of a houses structure, the items within the home, the liability protection, as well as the cost that occurs if homeowners are unable to use there home due to certain circumstances. When a home is destroyed entirely as a result of a covered loss the insurance company will pay as much as is necessary up to the limits of the homeowners policy in order to have the home rebuilt. As far as the actual items that were inside the home, there lost is also covered by the homeowners insurance policy.
Home and Auto Insurance protects policy holders against perils, which is a risk or a cause of loss. The perils associated with automobile insurance includes such things as the drivers negligence, a collision occurring, falling or flying objects that may hit the policy holders car and cause damage to it, or even the car being stolen, set on fire, or becoming the object of vandalism. The perils associated with home insurance are similar to those associated with auto Insurance. They include such acts as the home getting hit by lightning or falling objects or getting robbed or vandalized.