Orlando Property Insurance LawyersProperty insurance is a type of insurance that covers the cost of replacing or repairing a building or buildings and may cover any possessions or goods that are held on the property. Property insurance can be purchased by businesses, in which case it is referred to as commercial property insurance. Private property insurance is usually included as a part of homeowner’s or renter’s insurance.

What does Property Insurance Cover?

Property insurance is a broad term, and different types of property insurance can cover different things. If an individual has purchased a home to live in or a building for a business, the property insurance will cover the building or dwelling. If a person rents a home or building for a business, the property insurance is understood only to cover the possessions, equipment, or goods that are stored on the property.

The purchaser of a home or business building may choose to also insure the possessions or goods held on this property.  In this case, the policy holder will be asked to fill out a sheet detailing an estimated value of all removable property that will be held within the dwelling or building. A renter will also be asked to detail the value of property this way. The amount of coverage reflects this estimate, and higher values will mean higher premiums.

What Risks Does Property Insurance Cover?

The risks that are covered under a property insurance policy may vary greatly depending on what type of policy was purchased and what state the property is contained in. There are two main types of property insurance, open peril and named peril. In an open peril policy, all risks are covered except those that are specifically listed. In a named peril policy, the risks that are covered are listed.

Commonly covered risks include:

  • Fire
  • Lightening
  • Theft
  • Explosion

Named peril policies are much more common. There are different types of named peril policies that may be purchased. There are also extended coverage policies that are available to add risks that are not covered under the standard policy. Common risks that must be insured through extended coverage include crime, flood, windstorm, hurricane, and hail. These often vary from state to state.

Extended Coverage Property Insurance Policies

Insurance companies often choose to exclude risks that are common and highly detrimental in the area from the standard policy coverages. Insurance companies do business this way because if a catastrophe is covered, and many businesses and/or individuals file claims all at the same time, the insurance company may not be able to cover all of the costs. This can result in bankrupting the insurance company, and will be devastating for the individual or business that is not properly covered by the insurance policy that was purchased. Covering these risks separately reduces the number of businesses that will be able to file a claim in the event of a catastrophe. It also provides the insurance company with additional capital to cover costs in the event that the catastrophe does occur.

While this benefits insurance companies, it can be devastating to businesses and individuals that did not purchase the extended coverage. If an event such as a hurricane or flood destroys the building and hurricane insurance was not purchased, the business or individual will not receive any assistance from the insurance company. It is advisable for businesses or individuals to inquire about extended coverage that is recommended. It is often not until after a catastrophe has occurred that the individual or business realizes that the event was not covered by the property insurance.

Orlando Property Insurance Lawyers

If an insurance company denies a property insurance claim that an individual or business believes should have been covered, the individual or business should request a written denial letter detailing all reasons for the denial. Insurance companies are not always forthright with exactly what is covered in a standard insurance policy. In the event that an insurance company intentionally withheld information, an attorney may be able to able to provide information on what course of action to take in order to recover costs associated with a denied property insurance claim. Contact experienced Orlando Property Insurance Lawyers today!


“Commercial Property Insurance.” TDI.Texas.GovTexas Department of Insurance. Texas Department of Insurance, n.d. Web. 17 Sep 2013. <http://www.tdi.texas.gov/pubs/consumer/cb021.html>.

“Property Insurance.” USA.gov Government Made Easy. USA.gov, n.d. Web. 17 Sep 2013. <http://search.usa.gov/search?affiliate=usagov&query=property insurance>.