Property insurance provides protection against risks to the property like risk of damage due to some natural calamity or theft or fire etc. Property Insurance in United States is of two kinds-Open peril property insurance and named peril property insurance coverage. In open peril, the property is protected against all the risks which are not explicitly excluded from the policy and in named peril, the property is protected against the risk of perils which is named in the policy. Some examples of specific policies are fire insurance, earth quake insurance, flood insurance etc.
Property Insurance covers in United States are usually of three types:
In US, most of the states are prone to natural calamities like hurricane or thunders and hence property insurance becomes more inevitable. The premium for property insurance in the states which are prone to extreme weather conditions or are prone to natural calamities are high.
It is to be noted that damage due to terrorism, missile testing operation and riot is also covered. However, damages due to war , civil war, nuclear activity, overrunning of electronic equipment and damage due to negligence are not covered.