Property Insurance Property insurance is the coverage that protects property against fire, theft, weather as well as other unforeseen damages. The demand for property insurance is increasing with every passing day and as per statistics 76% of Americans do not have proper property insurance coverage. Forms of property insurance There are two ways in which property can be insured. Named Perils make it mandatory to list the actual cause of loss in the policy. This may include events like theft, explosion, fire and lightning. Open Perils This form of property insurance usually includes damage resulting from various causes. It however, excludes damage caused due to war, terrorism, floods, earthquakes and nuclear incidents. Two ways to get coverage for damages There are 2 ways in which property insurance coverage can pay for damages. They are as follows- Replacement Value By replacement value, it is meant that the actual amount is reimbursed so that the equipment can be replaced. For example, if an equipment costing USD$500 is damaged. Replacement value entitles the insured to get USD$500 as reimbursement. Generally, replacement value coverage attracts higher premium.