Which scenario best describes purchasing casualty insurance? If you’ve purchased this kind of insurance, I’m sure it can get you covered once you’ve caused damage to the property or injured another person.
This being said, your casualty insurance is capable of paying someone who sues you or files a claim against you relating to issues under your policy’s coverage.
Much more than this, it also includes worker’s compensation insurance, such that when workers are injured during work, this is usually helpful to business owners. There are many more things that you should know about purchasing casualty insurance. That’s why it’s best to stay in this article. So, without further ado, let’s start!
Which Scenario Does Best Describe Purchasing A Casualty Insurance?
So, which scenario best describes purchasing casualty insurance? As I’ve mentioned earlier, purchasing casualty insurance is a good idea as it covers your liability against persons or properties you’ve injured or damaged, respectively.
When someone claims for your acts or omissions causing damage or injury to another, you don’t need to pay for the liabilities personally because having casualty insurance can save you from that. It’s the same as when you’re a business owner and a worker injured while at work; it’s under the worker’s compensation insurance, which also falls to this.
Let’s further discuss three amazing facts whenever you purchase casualty insurance:
#1. Casualty insurance is linked to home and auto insurance
Let’s give you scenarios, so you’ll better understand what casualty insurance is.
Here’s a scenario showing how casualty insurance is linked to home insurance:
For instance, A was injured due to falling on the stairs at B’s house. B failed to continue the repair of step railings; for this reason, A fell, leading to broken limbs. Due to the fact that B failed the repair of the railings, he becomes liable for the accident. Thus, in this case, the homeowner’s insurance of B may cover the hospitalization bill of A, and this is the section of the policy related to casualty. Moreover, in case A sues B, the legal fees may be covered by the insurance too.
Here’s another scenario showing how casualty insurance is linked to auto insurance:
A puts his vehicle in reverse, so he can pull out his driveway. As he is backing, he hits the vehicle of his neighbor, B. Given that it’s A’s fault, he’s obliged to pay for the damage caused to B’s vehicle. You see, the casualty component of auto insurance is when it pays for the damage.
I guess it’s clear to you right now. But, to further enlighten you, let’s understand the reasons why you would need to purchase casualty insurance.
#2. The necessity to purchase a casualty insurance
The thing is that it can protect you from incurring expenses when you’re injured or caused damage to the property of another. This is especially vital whenever the claims against you involve expensive and large sums of money.
With casualty insurance, you’ll be freed from bankruptcy; you won’t be personally paying for court judgments or settlements.
For this reason alone, you’ll realize the significance of purchasing casualty insurance. This insurance can get you covered what you may lose in a court lawsuit. But then, it’s worth noting that when your coverage is less than what you owe to the court, you are still required to pay for the remaining amount. Yet, this is not a drawback because it can still save you from the cost compared to when you have to pay the entire amount personally.
See, when you have home insurance, for instance, you’re given three amounts of liabilities provided in your insurance policy. For instance, in California car insurance, you’ll have a minimum of 15/30/5 which means that you’ll get $15,000 in every death or injury caused to one person, $30,000 if more than one person in an accident, and $5,000 for property damage.
Don’t worry, though. You have the discretion to add liability coverage, and this is called umbrella insurance. Both home and auto insurance may allow for this. Although it’s usually costly, it has broader coverage, which can help you in times of need. Besides, it can even cover slander and libel claims.
#3. It’s linked to property insurance
So, you may have heard about property insurance; it’s also a good idea to have this as it can protect you when there’s damage due to theft, fire, and even weather. This involves customized insurance like flood, fire, home, earthquake, or boiler insurance. For instance, if you finance your home in a mortgage, the borrower may be requiring you to obtain home insurance coverage; this is especially crucial to protect the mortgage against unforeseen events, like natural disasters or fires.
It’s just the same when purchasing life insurance- one that protects you from financial loss. In addition, as mentioned a few times in this article, property insurance can cover costs against damages incurred to another person’s properties, injuries, and even legal expenses whenever you’re sued because of these things. Well, you can read in what circumstance would a property insurance claim be rejected.
It’s A Wrap!
So, you’ve already understood which scenario best describes purchasing casualty insurance. I hope you’re already enlightened. Hopefully, these three astonishing facts are enough for you to decide to buy one for yourself! It’s also best to read related articles; know what age to buy life insurance and when is the best time to buy car insurance.