Basic Property Insurance Law and Legal Definition

Basic property insurance refers to insurance against damage or loss against personal property of a person. This assures stability in the property insurance market for property located in the State of California. Admitted insurers and licensed surplus line brokers encourage more on acquiring basic property insurance because they provide for the equitable distribution among admitted insurers of the responsibility for insuring qualified property.

The following is an example of the state statute defining basic property:

Cal Ins Code § 10091 defines basic property insurance as insurance against direct loss to real or tangible personal property at a fixed location in those geographic or urban areas designated by the commissioner, from perils insured under the standard fire policy and extended coverage endorsement and vandalism and malicious mischief and such other insurance coverages as may be added with respect to such property by the industry placement facility with the approval of the commissioner or by the commissioner, but shall not include insurance on automobile or farm risks.