Property insurance covers damages to or loss of property, including homes, autos or luxury items such as jewelry or computers. Casualty insurance is purchased to cover legal expenses incurred from bodily injury or property damage to someone else. Property and casualty insurance is subdivided into two major lines: personal and commercial.
Personal lines coverage is homeowners' insurance and auto insurance. You purchase coverage to protect your home or vehicle from damage caused by accidents. Comprehensive coverage covers damage caused by factors other than collisions, such as fire, theft and vandalism.
Business owners purchase commercial insurance to protect them from liability claims because of faulty products or services. Errors and Omission insurance is another important coverage for businesses, protecting them from liability claims resulting from errors made that cause damage to clients.
Factors Influencing Premiums
Some of the factors underwriters consider in calculating your insurance premium are prior loss history and risk assessment. They consider the risk the company is assuming compared to the premium you are paying for your policy.
There are a number of insurance professionals who work in the property and casualty industry, including agents, adjusters, appraisers, investigators and underwriters.
The property and casualty insurance industry is controlled by cyclic changes in the industry. Soft market conditions prevail when there is increased competition and premiums decline. Hard market conditions are apparent when the availability of insurance declines and premiums increase.