Different Kinds of Property Insurance

Whenever we’d rent a car my dad would always skip the insurance, saying it was a scam. Then one winter, he had to take our SUV to the shop. The rental SUV he backed into a dumpster. Damage: $1200. Was it more than all of his passed-up insurances? Probably. Did he learn his lesson? No. There are many kinds of insurance out there. It may seem like a lot to pay while you’re paying it, but when something goes wrong, you’ll be glad you did.

Not all kinds of insurance protect against a future event. Title insurance, for example, can protect against the title of your property. If there is a fraudulent act that surfaces after you have bought your home, title insurance protects against it. There are all kinds of problems a property may have, from a forged mortgage to impersonation of owners by frauds, and title insurance will help keep your property yours, and any possible legal repercussions out of your backyard, so to speak.

Other kinds of insurance are just as obvious as the one my father chose to ignore. Builders risk insurance, general contractor insurance, product liability insurance, commercial auto insurance, the list goes on and on. Typically the more money you make, the more assets you have and the more responsible you are, which means the more kinds of insurance you need.

A lot can go wrong on a big project involving many people and lots of machines. It would be terrible to forego insurance only to wind up with a stalled project and a big lawsuit. Depending on what kind of insurance you get and what it covers, you won’t have to worry about any of that.

If you’re building a house or a commercial property, you need builders risk insurance. This kind of insurance is a bit easier to understand - it’s all in the name. The builder is at risk if any of the materials or equipment go missing or are damaged. Builders risk insurance protects against fire, storm damage, or vandalism. It’s important to obtain if you are a building owner or if you are a general contractor and it’s in the contract that you are responsible for it.

In general, if someone offers you insurance, it’s a good idea to take advantage. If something bad happens, chances are it’ll cost a lot more than the insurance did in the first place. I’d hope you learn a lesson, but some people, ahem, never do.

J. Klein Associates can help you with all of your insurance needs. Whether it’s contractor insurance or property and casualty insurance, you need to make sure you are protected.