What is Property and Casualty/Liability Insurance?

Insurance is the primary method to manage risk when defined as the potential for financial and property loss. Property and Casualty Insurance are types of coverage that help protect your property and those covered by the policy in case of an accident.

Property Insurance protects the assets you own. The most common types of property insurance policies are:

• Homeowners
• Auto
• Renters
• Condo
• Power Sports (to cover property such as boats and golf carts)

These policies are used to help mitigate against the risk of loss to the respective property.

Casualty Insurance protects you or a family member covered under the policy against financial loss resulting from legal action. More specifically, casualty insurance will cover an accident that may result in bodily harm to someone on or using your property or if someone’s property is damaged due to something you did or did not do. Due to property and casualty insurance being bundled together, a homeowner’s policy will include a property/dwelling section. Additionally, it will include a liability coverage section that will help cover any legal costs for an accident up to a specified maximum amount per occurrence.

At Pathstone, we are always looking ahead to potential economic, legislative, and regulatory changes that could impact our clients. Over the past two years it has grown increasingly challenging to plan, under the threat of significant near-term adverse income and transfer tax legislation. The passage of the 2022 Inflation Reduction Act, which excluded almost all previously proposed individual tax provisions, and the outcome of the 2022 mid-term elections, which will seat a divided 118th Congress, means significant tax changes affecting 2022 and 2023 are now likely off the table. While smaller bipartisan and special interest focused tax changes remain possible, we feel confident that the planning environment has normalized and that we won’t see another major catalyst for tax policy change until the 2024 general elections. Accordingly, the following outlines current law and provides a framework of considerations and opportunities to explore as part of traditional year-end planning. As always, please engage your Pathstone advisory team to help assess opportunities and their potential application and appropriateness to your family’s unique planning situation.