Rick Torres, State Farm Auto Insurance in Solvang, Explains The Differences Between Home Insurance and Property Insurance
–The overlap between home insurance and property insurance is often confusing, leading to the question, “Why do I need both home and property insurance?” Rick Torres, insurance agent with State Farm Auto Insurance in Solvang, CA clears up the confusion.
“There are both differences and similarities between a home insurance policy and a property insurance policy,” said Torres. “It is the overlap between the two that sometimes causes confusion. But, once the differences are explained it all becomes clear as to why someone needs both kinds of insurance.”
Property insurance covers commercial buildings, the physical structures we call home and business and personal possessions. Property insurance is also found on boat and auto insurance policies. Insurance payments that are made to the owner when a boat or vehicle is damaged come from the property section of the boat or auto insurance. Solvang agent Torres says, “Basically, property insurance protects physical things like structures, boats and autos and other physical assets, like furniture.”
A homeowner’s insurance policy has more than one type of coverage that includes property insurance and liability insurance. The property insurance part of homeowner’s insurance reimburses the owner for damage to, or loss of, the house. Liability insurance provides protection if someone sues you because they tripped and fell on the front steps. The insurance company will defend the lawsuit and pay the injured party from the liability section of the homeowner’s policy.
Homeowners may need additional property coverage if the value of personal property exceeds the coverage included in a basic policy. Valuable family heirlooms, art and jewelry are examples of items that might require additional coverage. Additional liability coverage for both home and auto, or boat, might be in order, depending on any number of factors.
Things that can trigger changes in insurance coverage include operating a home-based business, a promotion or salary increase at work, a change in net worth, liability coverage for pets, keeping the kids’ 4H animals on the property, or any livestock for that matter. Adding a swimming pool or that long dreamed about tennis court and in some cases even setting up a trampoline in the backyard for the neighborhood kids can increase liability risk.
Rick Torres Insurance Agency, Inc., provides property, home and auto insurance from the Solvang office and serves the entire Central Coast. Insurance agents regularly review policies and coverage limits with their clients. Anytime you have a question about any insurance policy, contact the Solvang office. Rick Torres is happy to review current policies, answer questions and make recommendations that provide the best coverage.
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