Why Property & Casualty Insurance Is Essential: Protecting People and Property
“Property and casualty insurance” sounds like another stuffy industry term—something you probably don’t need. But in fact, virtually all of us will need some kind of property and casualty insurance at some point, whether it’s auto liability coverage or homeowner’s insurance.
Keep reading to learn more about this vital protection, who needs it, and how you can help people safeguard their assets by becoming a property and casualty insurance agent.
What is property and casualty insurance?
Property and casualty (P&C) insurance is a term for a range of insurance products that protect property and provide liability protection. Property insurance and casualty insurance are almost always sold together since most companies bundle them.
- Property coverage protects things like your house, car, furniture, high-priced valuables (like art and jewelry), electronics, and more.
- Casualty insurance provides liability protection if you are found responsible for another person’s injuries or damage to their property (for example, if another driver is injured in a car accident in which you were deemed at fault; or if a delivery person slips and falls in your icy driveway and sues you for their injuries).
Auto insurance, homeowner’s insurance, and landlord insurance are just a few examples of P&C insurance policies.
Why you need P&C insurance
Imagine losing everything you own in a fire. Or being sued for the other driver’s medical expenses after a car accident. A major loss like this could take a huge toll on your finances or even send you into bankruptcy.
This is where P&C insurance comes in. It provides vital protection against financial losses. Here are just a few reasons why you need P&C insurance:
It protects you against unexpected events and losses.
P&C insurance provides liability protection in case of an accident or disaster. It also protects valuable assets, like your home, car, or business, from damage or loss.
It may be required by law.
As of 2023, auto liability insurance is mandatory in every state except Florida. You must carry at least your state’s minimum liability limits. In Texas, for example, if you own and drive a vehicle, you must have bodily injury liability coverage with minimum limits of $30,000 for each injured person and $60,000 per accident, plus $25,000 of property damage liability coverage per accident. This is abbreviated as “30/60/25.”
Lenders may require it.
Auto lenders usually require full coverage (liability, comprehensive, and collision protection). Banks and escrow companies often require home buyers to carry insurance to protect the bank’s investment in case of any damage or loss to the property.
It provides peace of mind.
Knowing you’re protected in case of an accident or disaster means greater peace of mind. Having insurance removes nagging worries about “what ifs.”
What are some types of P&C insurance?
Here are some of the most common types of property and casualty insurance:
- Auto insurance – Provides financial protection for damages or injuries that occur in the event of a car accident or other loss (such as theft).
- Homeowners/Condo insurance – Protects homeowners from financial losses due to damage or loss of their property and liability for any harm or injury caused to others on their property.
- Umbrella insurance – Provides additional liability coverage beyond the limits of your other insurance policies, protecting you from financial losses due to costly lawsuits or claims.
- Landlord insurance – Protects property owners from financial losses due to damage or loss of the rental property or liability claims from tenants.
- Business insurance – Protects business owners against liability claims and financial losses due to property damage or other unexpected events that could negatively impact business operations.
How to become an insurance agent
Becoming a property and casualty insurance agent is a great way to make a difference in your community and establish a career in a stable industry. As a P&C agent, you’ll help individuals and businesses get the coverage they need to protect their most important assets.
If you love working with people and enjoy explaining how things work, a career as a P&C insurance agent might be a great fit.
Before you can start working as a P&C agent, you need to get licensed in your state. That means taking the insurance licensing exam.
America’s Professor is a leading provider of insurance pre-licensing education. We’ve helped thousands of students prepare for their state licensing exams. Our easy-to-follow exam prep courses provide everything you need to know to pass the multiple choice exam, so you can sell property and casualty insurance or start down the career path of your choice.
When you enroll in an AP course, you’ll get instant access to streaming video lectures, followed by a comprehensive hardcopy textbook in the mail. And it’s all backed by our outstanding customer service.
Hear what our students are saying about our programs and enroll in a course today!