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You’ve worked hard to build your financial plan, so why leave it at risk? Property and Casualty insurance – often called P&C – helps protect it from unexpected events, whether it’s a car accident, a house fire or a liability lawsuit. Insurance isn’t just about buying coverage; it’s about gaining confidence that your financial plan is protected from life’s uncertainties.

P&C can play a big role in providing you with some of that confidence.

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PROPERTY VS. CASUALTY INSURANCE

While they are the two components that make up P&C insurance, each has a unique purpose in covering distinct, but related, risks.

• Property insurance protects you from the loss of or damage to your personal property. It typically covers financial losses related to events like theft, fire or vandalism.
• Casualty insurance protects you from legal liability if you’re found responsible for damaging someone else’s property or otherwise causing them harm. It typically covers legal fees, medical expenses and other settlements.

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PROTECT YOUR HOME: HOMEOWNERS INSURANCE

Your home equity is likely your most significant asset, and homeowners insurance is designed to protect it. The most common is an HO-3 policy, which offers a��package of coverages, with optional endorsements to tailor protection to your specific needs.

Key coverages include:

• Dwelling (Coverage A)��– Covers the cost to repair or rebuild your home after a covered loss. This amount is based on labor and material costs, not the market value or tax assessment. So, be sure to update this coverage after any renovations or additions and understand your dwelling limit, or the maximum payout from a covered event.
• Other Structures (Coverage B)��– Covers detached structures like fences, sheds or detached garages, and is typically set at��10% of the dwelling limit. This coverage is built-in and cannot be removed, but you have the option to purchase higher limits.
• Personal Property (Coverage C)��– Covers belongings you’d take with you if you moved – like furniture, clothing, electronics and more – and is usually set at��50–75% of the dwelling limit.
• Personal Liability (Coverage E)��– Protects against lawsuits for injuries occurring on your property. Minimum coverage is��$100,000, but most carriers default to��$300,000.
• Deductibles��– The default deductible with many carriers is $1,000. But higher deductibles can reduce premiums, so if you’re comfortable covering claims up to $2,500, for example, consider increasing your deductible.

Common optional endorsements include:

• Water and Sewer Backup��– Covers losses from drain backups or sump pump failures. Minimum coverage is often��$5,000–$10,000, with higher limits available. This is especially important if you have a finished basement.
• Ordinance or Law��– Provides additional funds to bring a home up to code during reconstruction. Coverage often ranges from��$25,000–$50,000, or a percentage of the dwelling limit.
• Loss Assessment��– Important for HOA members, this covers special assessments from the HOA when liability exceeds the HOA’s insurance.
• Service Line Coverage��– Covers repairs to underground service lines (for example, water, sewer or gas) between your home and the street. This may be valuable for older homes or those set far back from the road.

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PROTECT YOUR CONDO: CONDO INSURANCE

Is your home a condominium? Condo policies, also known as HO-6, offer similar protections to homeowners insurance but are tailored to the unique structure of condo ownership.

There are a few things you should consider when arranging your condo coverage:

• Personal property coverage��is usually higher than dwelling coverage, since the condo association insures the building structure.
• The most important factor is what the��condo association’s rules and regulations (or bylaws)��say about reconstruction:
  • If the condo association is required to rebuild your unit to the��drywall stage, you need enough Coverage A (Building Property) to finish the interior, including flooring, cabinetry, lighting, plumbing and fixtures.
  • If the condo association rebuilds your unit to��builder’s grade finish, you only need enough Coverage A to pay for��interior upgrades.

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PROTECT YOUR VEHICLE: AUTO INSURANCE

If you own a car, you’re required to carry liability coverage, but your policy should also protect your vehicle and your financial assets.

Here are some key coverages to consider:

• Bodily Injury Liability��– Covers injuries you cause in an accident. State minimums are often��$25,000–$35,000 per person, but you’ll often need��$250,000 per person / $500,000 per accident��to qualify for umbrella coverage (more on that later).
• Property Damage Liability��– Covers damage to others’ vehicles or property (for example, fences or mailboxes). The umbrella requirement here is usually��$100,000.
• Uninsured and Underinsured Motorist��– Protects you if you’re struck by someone with no or minimal insurance. Coverage should match your bodily injury limits.
• Collision��– Covers damage to your vehicle from an accident. Deductibles typically range from��$500–$1,000.
• Comprehensive (other than Collision)��– Covers fire, theft, hail and falling objects. Deductibles usually range from��$250–$500.

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PROTECT EVERYTHING: UMBRELLA LIABILITY INSURANCE

Let’s face it – we live in a litigious society, and yet only 22% of US homeowners with incomes between $100,000 and $200,000 carry an umbrella policy, according to the J.D. Power U.S. Homeowners Insurance Study. That’s why it’s important that every homeowner consider purchasing an��umbrella policy. In the event of a lawsuit resulting from an accident, an umbrella policy extends the liability coverage limits from your underlying��home��and��auto��policies.

To qualify for umbrella coverage, most carriers require minimum underlying limits:

• Homeowner��– Premises Liability (Coverage E):��$300,000
• Auto��– Bodily Injury Liability:��$250,000 per person / $500,000 per accident
• Auto��– Property Damage Liability:��$100,000

Umbrella coverage is typically available in��$1 million increments, and the combined liability coverage from your home, auto and umbrella policies should be enough to protect any assets that could be exposed in a lawsuit.

Most of the time, it’s best to purchase the umbrella policy from the same carrier that insures your home or cars. If that’s not possible, brokers can offer��standalone umbrella policies, which don’t require bundling with other lines of coverage.

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P&C INSURANCE CONSIDERATIONS FOR BUSINESS

We’ve already covered the most common types of P&C insurance for individuals. But if you’re a business owner, there are others you may want to consider, including:

• Commercial property insurance
• Commercial auto insurance
• General liability insurance
• Workers’ compensation
• Professional liability insurance or “Errors and Omissions”

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WHY INSURANCE GUIDANCE IS A KEY PIECE OF FINANCIAL PLANNING

We believe insurance should be tailored to your life – not just your assets. Your financial plan is more than just numbers; it’s a reflection of your goals, your values and the life you’re building. At ��Ѩ��Ƶ, we believe that protecting what you’ve built is just as important as growing it. That’s why our advisors work closely with our internal insurance experts to help you evaluate coverage options, understand trade-offs and make informed decisions tailored to your unique circumstances.

Whether you're reviewing existing coverage or exploring new strategies, we’re here to help ensure your financial plan stays on track – no matter what life brings. We can help you access additional planning resources and insurance insights that are designed to support your long-term financial wellbeing.