Do You Need Casualty Insurance?

investopedia.com

70 NEWS JAPAN - Insurance is generally defined as a form of risk management, where risk is transferred from oneentity to another in exchange for a premium. Casualty insurance, like property insurance, insures against loss and/or damage of property. The difference is that casualty insurance covers loss that is a result of direct accident, while property insurance covers events, such as theft or burglary.

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Vehicle or auto insurance is designed to protect a driver's car, truck, motorcycle and other vehicles against losses sustained from events like traffic accidents. You agree to pay the premium, and in the event of an accident, the insurance company agrees to pay your losses as defined in your policy. In most states, except Wisconsin and New Hampshire, having auto insurance is compulsory.

Flood coverage is a service provided by the National Flood Insurance Program (NFIP) and other private insurers. A standard home insurance policy is designed to protect a homeowner against loss of personal property inside the home or even damages to the home itself. Personal property is often described as "movable items", or property that can be moved from one location to another. It includes furniture, clothes, art, writing, household goods, boats, vehicles, etc. The problem with most home insurance policies is that they exclude natural disasters or "acts of God." Homeowners have come to realize that they have to buy additional insurance to protect themselves from damages that occur due to theft, wind or flood.

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Liability insurance is designed to protect the insured from various risks, including being sued for negligence and unintentionally causing harm to someone in the course of an accident. This type of insurance is beneficial to people in high-risk professions like construction, manufacturing and medicine. Liability insurance comes in handy when the policyholder engages in unintentional behavior during the course of work that causes damage or harm to someone else. For example, if you are a construction worker and a structure you work on hurts someone, if you did not intentionally cause harm, the insurance company will cover the cost of damages to the injured party.