Inland marine insurance and standard property insurance are two types of coverages that offer protection for personal or business property. However, these two policies differ in terms of what they cover and how they are designed.
Inland marine insurance was originally created to cover goods while they were being transported over waterways, but it has since evolved to cover a wider range of property that is not stationary.
On the other hand, standard property insurance primarily provides coverage for fixed structures and their contents. Both policies have their own unique benefits and limitations, making it important for individuals and businesses to understand the differences between them in order to choose the right coverage for their specific needs.
In this article, we will delve deeper into the specifics of inland marine insurance and standard property insurance, including their coverage, exclusions, and benefits.
What Is Inland Marine Insurance?
Inland marine insurance, also known as inland transit insurance, is a form of property coverage that protects movable or transportable property.
This type of insurance was originally created to cover goods while they were being transported over waterways such as rivers and oceans. As trade and transportation evolved, so did the definition of “inland marine,” which now includes any type of property that may be moved from one location to another.
Inland marine policies are typically designed for businesses that have valuable equipment or goods that need to be transported frequently. These can include construction companies, art dealers, and even technology companies that regularly ship their products across the country or internationally.
What Is Standard Property Insurance?
Standard property insurance, on the other hand, is a type of coverage that protects fixed structures and their contents. This can include homes, buildings, and their contents such as furniture, appliances, and personal belongings.
Unlike inland marine insurance, standard property insurance policies are typically designed for individuals or businesses that own a permanent location. These policies provide protection against perils such as fire, theft, and natural disasters that may cause damage to the structure or its contents.
In addition to providing coverage for physical damage to property, standard property insurance also offers liability coverage in case someone is injured on the insured’s property.
Main Differences Between Inland Marine Vs Standard Property Insurance
There are several key differences between inland marine insurance and standard property insurance, which include:
Coverage
The main difference between inland marine insurance and standard property insurance lies in the coverage they offer. As mentioned earlier, inland marine insurance is designed to cover movable or transportable property while it is in transit. This includes goods being transported over land, air, or water.
On the other hand, standard property insurance provides coverage for fixed structures and their contents. This can include homes, office buildings, and their belongings. Unlike inland marine insurance, which covers only movable properties, standard property insurance also offers liability coverage for accidents or injuries that may occur on the insured’s property.
Perils Covered
When it comes to perils covered, there are some similarities between inland marine insurance and standard property insurance. Both policies typically cover damage caused by fire, theft, and natural disasters. However, inland marine insurance may also offer coverage for perils that are unique to the transportation of goods such as collisions or damage during loading and unloading.
Additionally, standard property insurance may offer coverage for perils that are specific to fixed structures such as water damage or roof collapse due to heavy snow.
Valuation Methods
Inland marine and standard property insurance also differ in terms of how they determine the value of covered items. In inland marine insurance, there are two common valuation methods used: agreed value and actual cash value.
Agreed value means that the insured and the insurer agree on a set amount for the item being insured. If this item is damaged or lost, the insurer will pay out the agreed-upon amount regardless of its current market value.
On the other hand, actual cash value takes into account depreciation when determining the value of an item. This means that the payout for a damaged or lost item will be based on its current market value, which may be significantly lower than its original cost.
Standard property insurance, on the other hand, typically uses replacement cost as the valuation method. This means that any damaged or lost items will be replaced with similar items at their current market value without taking into account depreciation.
Limitations and Exclusions
Both inland marine and standard property insurance policies have limitations and exclusions that individuals and businesses should be aware of. For example, inland marine insurance may not provide coverage for certain high-risk activities such as skydiving or bungee jumping, while standard property insurance may exclude coverage for damages caused by floods or earthquakes.
It is important for individuals and businesses to carefully review their policy’s limitations and exclusions to ensure that they have the appropriate coverage for their specific needs.
Which Type of Insurance Do You Need?
Determining which type of insurance you need ultimately depends on the nature of your property and its use. If you have valuable equipment or goods that are frequently transported, inland marine insurance may be the right choice for you. On the other hand, if you own a permanent location with fixed structures and contents, standard property insurance would be more suitable.
It is important to carefully assess your specific needs and consult with an experienced insurance agent to determine the best coverage for your property. In some cases, a combination of both inland marine and standard property insurance may be necessary to fully protect all aspects of your business or personal assets.
So, it is always recommended to discuss with an insurance expert before making a decision. Additionally, it is important to regularly review and update your insurance policies as your needs may change over time.
Why A Professional Insurance Company Matters
Choosing the right insurance company to protect your property is just as important as selecting the appropriate coverage. A professional insurance company with experience in both inland marine and standard property insurance can provide valuable advice and tailor policies to meet your specific needs.
They can also assist in identifying potential risks and gaps in coverage that you may not have considered. In case of a claim, a reputable insurance company will ensure a smooth claims process and provide support every step of the way.
Also, a professional insurance company will have the resources and expertise to help you navigate any legal complexities that may arise in case of a liability claim. And in the event of a dispute, they can act as a mediator between you and the other party involved.
Ultimately, choosing a reputable insurance company ensures peace of mind and protection for your valuable property. So, it is crucial to do thorough research and choose the right insurance partner for your specific needs.
How Much Does Inland Marine and Standard Property Insurance Cost?
The cost of insurance premiums for both inland marine and standard property insurance can vary depending on several factors such as the value of the insured property, location, coverage limits, and deductibles. It is important to carefully consider these factors when choosing a policy to ensure that you have adequate coverage without overpaying for unnecessary features.
Additionally, maintaining proper risk management practices can help lower your insurance costs by reducing potential risks and claims. This includes regular maintenance of equipment and structures, implementing safety protocols, and investing in security measures to prevent theft.
Also, regularly reviewing and updating your policies can ensure that you are not overpaying for coverage that no longer meets your needs.
Choose Larsen Insurance for Your Inland Marine and Standard Property Insurance Needs
If you are in the market for inland marine or standard property insurance, look no further than Larsen Insurance. With over 15 years of experience and a commitment to personalized service, our team can help you find the coverage that best meets your specific needs.
We provide Inland Marine Insurance, which covers property in transit or at a fixed location that is not covered by standard property insurance. This includes items such as construction equipment, tools, and valuable artwork.
Our Standard Property Insurance offers coverage for your home, car, life, business, recreational vehicles, and more. We understand that each individual’s insurance needs are unique and we work with multiple carriers to find you the best rates and coverage options.
Join our satisfied clients and choose Larsen Insurance for all of your inland marine and standard property insurance needs. Contact us today or visit our office in Andover, MN for personalized service with a personal touch.
FAQs
What is the difference between inland marine coverage and standard property insurance?
Inland marine coverage is designed to protect movable or specialized types of property, often during transportation or off-site locations, unlike standard property insurance which typically covers fixed assets at a specific location. Inland marine insurance coverage is ideal for businesses that frequently transport goods or have equipment that operates in various locations. This type of marine insurance cover is crucial for safeguarding against unique risks not covered by standard property policies.
Why might a business need inland marine insurance instead of standard property insurance?
A business might need inland marine insurance if it deals with transporting goods, equipment, or valuables frequently. Inland marine insurance protects items on the move or situated away from a central business location, unlike standard property insurance which is limited to a fixed address. This type of inland marine insurance policy provides broader protection, ensuring that assets are covered during transit and at temporary locations, minimizing potential financial losses.
How does inland marine insurance cost compare to standard property insurance?
Inland marine insurance cost can vary significantly based on the type and value of items covered, as well as the specific risks associated with their transportation. While inland marine insurance policies might be more expensive than standard property insurance due to their specialized nature, they offer necessary protection for movable assets. Businesses should compare costs and coverage options to determine the best fit for their needs and consider how inland marine insurance protects against potential losses.
What types of items are covered under inland marine insurance policies?
Inland marine insurance cover typically includes a wide range of movable property, such as construction equipment, tools, fine art, and even computer equipment. It can also extend to motor truck cargo coverage for businesses involved in shipping goods and provides extensive inland marine insurance protection. This is distinct from ocean marine insurance, which covers items transported via sea. Understanding these differences can help businesses decide when to buy inland marine insurance for optimal coverage of their assets.