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December 19, 2022

What is property and casualty insurance? Definitions, differences, and examples

If you're in the market for property and casualty insurance, or are just curious about what it is, you've come to the right place. In this article, we'll discuss the difference between property and casualty insurance, what scenarios the most common policies will protect, and how much coverage you should have. By the end of this post, you'll have a much better understanding of what property and casualty insurance is and how they can benefit you. So, let's dive in.

What is property and casualty insurance?

Property and casualty insurance, more commonly known as P&C insurance, is a broad term for the type of coverage that protects both your property (such as your home or car) and the things you're found legally responsible for (such as damage you may cause to someone else's property). Property and casualty insurance can help protect you from financial losses due to unexpected events such as fire, theft, storms, or accidents.

What's the difference between property and casualty insurance?

The "property" part of P&C insurance refers to the coverage of tangible items from physical damage or loss. For example, if your house catches on fire or is damaged by a storm, property insurance would cover the cost of repairs.

The "casualty" portion of P&C insurance refers to liability coverage for the harm or damage caused to others. For example, if you are driving your car and accidentally hit someone else’s vehicle, casualty insurance will cover the cost of their repairs and/or medical bills.

What are the types of property and casualty insurance?

When it comes to property and casualty insurance, there are several different types available to protect you and your personal assets. These include but are not limited to:

What does property and casualty insurance cover?

Property and casualty insurance can cover a variety of different scenarios, depending on the type and coverage you choose.


Homeowner's P&C insurance may cover:

  • Property damage incurred from a natural disaster, theft, or vandalism
  • Property loss due to hazardous weather conditions like fire or windstorms
  • Property damage caused by plumbing leaks, electrical issues, HVAC (heating/cooling) systems, and faulty appliances
  • Liability protection for legal claims related to injuries or damage while on your property

Renter's P&C insurance may cover:

  • Personal property damage incurred from a natural disaster, theft, or vandalism
  • Liability protection for legal claims related to injuries or property damage on your rented premises
  • Loss of use coverage in the event that repairs are required for your apartment building and you're temporarily forced to live elsewhere

Auto P&C insurance may cover:

  • Property damage to your vehicle as a result of an accident, natural disaster, theft, or vandalism
  • Medical bills resulting from any injuries sustained in an accident
  • Liability coverage if you are found legally responsible for someone else’s injuries or damages to their vehicle or structure

Watercraft P&C insurance may cover:

  • Damage caused to your vessel by an accident or other covered events such as theft, fire, hail, flood, or vandalism
  • Medical expenses resulting from an accident on the watercraft
  • Liability protection if you cause harm or damage to another person or their property while boating
How much property and casualty insurance do I need?

The exact amount of property and casualty insurance coverage you need depends, of course, on your particular situation and type of policy. Generally, it is recommended that homeowners and renters have at least $300,000 worth of liability coverage in case of a lawsuit. It's also important to consider additional factors, such as the value of your assets, the cost of living in your area, and any other special items you want to be included in the coverage.


For the most accurate quote, it's best to contact an experienced personal insurance advisor near you. They can help you understand the coverage options available and assist you in finding the policy that best fits your unique needs.

Where can I get property and casualty insurance?

Property and casualty insurance can be purchased from most major insurance companies or through an independent agent in your area. Before you do, though, we recommend that you compare quotes from multiple providers to ensure you are getting the best coverage at the most affordable rate.

At Christensen Group, we take a unique approach to P&C insurance, and you’ll experience the difference immediately. Our team of knowledgeable advisors will peel back the layers and go beyond price to bring true transparency to the conversation. Through thoughtful education and real-world examples, we help you understand every aspect of your risk and how it could impact your future.

If you're looking for precise solutions that will protect your assets from any and all potential risks, we encourage you to speak with one of our property and casualty insurance experts today.

About the author

Tony has nearly two decades of experience in the insurance industry and holds a Certified Insurance Counselor designation. In addition to specializing in tailored risk management for affluent families, Tony sits on Agent Advisory Boards for multiple carriers. He also gives back by teaching Personal Insurance to high school seniors.

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