What is property insurance?
Property insurance is a type of insurance policy that you can avail to safeguard physical properties that you own. The properties that you can insure include home, apartment, business, café or hospital etc. You can protect the building and the contents inside it against fires, burglaries, natural disasters, and other unfortunate incidents.
Property insurance is an ideal policy to take if you own a home or any other property in a natural disaster-prone area or a burglar prone area. It will help you cover the financial losses that may incur if something drastic happens to your property. With the advent of the internet, it is now reasonably easy to buy property insurance online.
Why is it important to buy property insurance?
- To protect against natural disasters.
Natural disasters can come calling at the most inopportune moments. It will leave nothing but rubbles in its wake, especially earthquakes and floods. With global warming and increased population, adding more fuel to the fire, it is best to prepare yourself for the worst-case scenario. Otherwise, your hard invested money will be lost all in the blink of an eye. It will be hard to rebuild back again your property from scratch, and it can leave you with a hard financial burden.
- Safeguard your property from burglary
Over 1 million burglaries and dacoity, take place in India every year. The alarming rate of burglaries happening in India is only increasing every year. Similar to a natural disaster, this man-made activity too can leave you in shambles, especially if you house valuables and important assets. Prepare yourself against such unforeseen circumstances with a property insurance.
- Financial backup for when your property gets consumed in a fire
Fire is another uncontrollable event that could ravage your entire building. You might not be able to salvage anything after a fire has destroyed your home. Thus a property insurance can help you get back on your feet.
- Low premium costs
Property insurance is a great investment option that costs a negligible amount compared to the surety it provides. Most premiums range from Rs. 500-Rs. 3000. If you own a property, you can spend a little more to protect it.
- Sense of security and financial backup
Having a financial backup with a property insurance will keep your accounts in check and not let it go into overdrive mode. It will give you an overall sense of security, both financially and mentally.
Types of property insurances
Property insurance can be divided into different categories depending on the property that you are trying to insure.
- Home insurance – This will cover your own home or the rented home and the personal belongings within it against burglaries, fires, floods, storms and explosions. Either you can opt to protect just the contents inside the home, or both the building and the contents inside it. Depending on the contents that you want to ensure, the premium also increases.
- Shop insurance – This is to ensure the building in which your shop is housed. If your shop is destroyed in a fire, flood or earthquake or if it is subjected to burglary, then a shop insurance will come to your rescue. You also have the additional option to cover for the cash in the counter of your shop as well through this type of insurance.
- Office insurance – You can secure your office and its premises with an office insurance. With this type of insurance, protection against flood, lightning, riots, strikes, cyclones, storms, etc. are covered. Apart from this Protect against damages due to your employees’ dishonesty, and personal accident cover for the owner is also included. Burglary and fire are also included in this.
- Factory and warehouse insurance – If you own a vacant warehouse or a smooth-running factory, then the liabilities associated with are riskier than those of a home or office. You can cover unoccupied vacant warehouses from accidental damages with this policy. This will cover for the content, money and stock inside the factory. Other public liabilities associated with damage to the factory will also be covered.
- Art insurance – If you are a dealer or owner of art, musical instruments or other such varied and valuable artefacts, then an art insurance is a must. These items can be comparatively invaluable and can cost millions. This will cover both natural and human-made factors like burglary, fire, flood, earthquake, etc.