Companies that sell general insurance provide various policy types, even those that provide protection for the home. In this case, coverage would include allied perils, fire, inundation, earthquake, flood, storm damage, etc. In addition, general insurance would cover your home from a break in, theft, and other such damages. Interestingly, general insurance also has policies for machinery should any of them break down.
Then, general insurance covers marine issues. Under the Marine Cargo policy, any type of goods being transported on the water, by air, or by road would also be protected from theft or damage. Additionally, automobiles would be covered under different policies for general insurance and in fact, of all the different types of policies available, automobile coverage accounts for the majority of this insurance type.
One important note when it comes to general insurance and property protection.
Only the real value of the property can be purchased in the form of an insurance policy. If someone were to take out a policy of greater value, risk of being charged with a hefty fine is likely. By law, insurance coverage cannot be more than actual value so in this case, there could be some legal consequences.
In addition, for general insurance you would be required to insure a property for the value and not less. If you did not carry enough insurance and something were to happen, you as the policyholder would have the brunt of responsibility for what is referred to as “ratable proportion of loss.” In other words, if a home were appraised at $200,000 but you only insured it for $100,000, if damage were done to the home to the full amount of the policy, being $100,000; the policy would only pay out $50,000 because you carried 50% less insurance than required. Of course, if the property were underinsured for 25%, 30%, 40%, or some other amount, the policy would match that on a claim.