Property Insurance - What Is It?

By Carrie Harris in Homeowners Insurance on May 8th, 2008

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by Carrie Harris

When you hear the term “property insurance”, what is your first idea of what the definition of that term is? This can be a confusing one to figure out if you are not familiar with how insurance works. One might think it to be insurance on land or it might also be insurance on a building and the land it sits on.

Let’s get some clarification on these two terms before moving on.

Homeowners insurance applies specifically to the home and the possessions in the home. Although, it may not apply to every possession. If you have a garage, shed, or any other structure, homeowners insurance will cover that as well. The kicker here is that it does not apply to the land your home sits on. Obviously, the grass and dirt don’t need to be insured, so this is why it is this way.

So now that we have that clarified, let’s look at what you need to know in the event that you lose your home and everything in it. The first thing to think about is how much will it cost to replace everything you own? I know this may seem overwhelming, but you will want to actually take a count of everything in your home and how much you think it is worth. It is also good to do this for your actual home structure as well - find out how much it is worth to rebuild it today.

So, how exactly can you figure out the cost of your home? I highly recommend you talk to a real estate agent. This can be a very confusing task to accomplish without the help of a professional. If you lose your home, you will most likely want to be able to rebuild on the land you own, therefore, you need to have coverage for that.

I have always struggled to understand insurance. It doesn’t matter if it is homeowners, renters, car, or medical insurance. It has all been quite confusing to me. This is why it is so important to get people to help you. Finding a real estate agent who is willing to help you out in figuring the amount of a rebuild is a good way, but it is also important to do your own research.

So what are some easy ways to take a good inventory in your home when trying to figure out amounts? Take pictures and videos so you have recorded every item for future reference. It may seem like a mundane task to do, but it will save you time in the future.

Insurance shopping is not a fun chore, but it has to be done if you want to save money and protect yourself in case of an emergency. Property and homeowners insurance are the same thing indeed. Don’t rush when looking for insurance. It is more important to be slow and cautious than to be fast and furious.

About the Author:

Carrie Harris is a homeowners insurance companies expert and desires to help others understand insurance in a clearer way. Be sure to check out more of what she has to say about homeowners hazard insurance