Get Quote alt-image
Need Help?
Request a Callback from Us
Thank you for showing interest.
Enter your contact details to proceed.

  • image
  • Thank you!

    We are always available to resolve your queries! You will receive a callback from us.

The time slot chosen for you is 9th March, between 10AM - 12PM

back Back to Blogs

Types of Property Insurance: Understanding Your Cover Options

Posted on 20 Feb, 2023

Having the right property insurance coverage is essential for protecting your home and belongings. But with so many types of policies available, knowing which options are the right ones for you can be tricky. Here, we’ll walk you through the main types of property insurance and what they cover so you can make informed choices when reviewing your coverage options.

Benefits of Professional Indemnity Insurance for Doctors

Landlord Insurance

Landlord insurance provides protection for rental properties and is essential for anyone leasing out a house, apartment, condo or other dwelling. It covers damages to the structure itself as well as losses of rental income if the property becomes uninhabitable. Liability coverage is included to protect against tenant injuries or accidents.

Key coverages include property damage, loss of rent, theft, and more. One can opt for add-ons to cover unforeseen circumstances like vandalism, fire, and storm damage. Policies are tailored to the risks associated with rental properties and whether the agreements are for a long- or short-term duration. Landlord insurance gives property owners peace of mind, knowing their investment is protected if the unpredictable happens. Partnering with an insurance provider experienced in such policies ensures proper protection.

Renters Insurance

Renters insurance provides protection for your belongings as a tenant. It covers your property from fire, smoke, windstorms, hail, explosions, riots, vandalism, theft, and more. Such policies also cover additional expenses if you have to move out of the premises due to damage caused by a circumstance listed in the policy.

Liability protection is typically included in such plans to cover injuries to others that occur on the property for which you are deemed responsible. This protects you from costly legal expenses that could arise. Like homeowners policies, renters insurance also generally offers additional coverage options for damage to the property. Such policies also cover any damage to your belongings.

Homeowners Insurance

A homeowners insurance plan is a comprehensive property insurance policy. It covers damage to your dwelling and belongings as well as liability coverage in case someone gets injured on your property.

Coverage is typically available for primary and detached structures like garages. Your possessions are also covered for perils like fire, lightning, windstorms, hail, explosions, riots, and theft. If the property gets damaged due to an insured disaster like floods, vandalism, and other causes and you need to move out of the premises, the insurer will cover the additional living expenses incurred.

The liability coverage included in a homeowners policy protects you if someone is injured on your property and decides to take legal action. It covers both legal defence costs up to the limit of your policy. Most homeowners’ policies also include coverage options like medical payments to others injured on your property, expenditures due to damage to someone else’s property, and personal property coverage for belongings listed in the policy document.

Condo Insurance

Condo insurance covers personal property and third-party liability, similar to renters insurance. But it also includes coverage options specific to condominium living. The walls-in policy covers your possessions, additional living expenses, liability and additions, and alterations or upgrades you’ve made to the interior of your unit. Typically, it covers what is inside the owned space, like cabinetry, walls, carpets, etc.

A walls-out policy also covers the physical structure of the condo itself, providing protection for the building’s common elements. Typically, it covers damages that affect areas outside your owned space, like the roof, windows, carpets in the hallway, and shared spaces such as lobbies and recreation rooms. Check your condo association’s Master Policy for details on what’s already covered before deciding on a walls-in or walls-out plan.

Commercial Property Insurance

Safeguarding commercial property is vital for business owners. Commercial property insurance covers the premises, equipment, inventory, and sometimes even business interruption costs. It ensures your business can bounce back from unexpected events like fires or thefts.

Additional Coverage Options

Now that we’ve covered the basics, let’s explore some additional property coverage options you may consider to widen the scope of your insurance plan.

Umbrella Insurance

Want an extra layer of protection? An umbrella insurance coverage goes above and beyond the limits of your standard policies, providing additional liability protection. It covers the legal expenses for damage to other people’s property and injuries caused to a third party in an accident. It’s like having a financial safety net to catch you if your standard coverage falls short. This category of insurance plans also provides coverage against slander, libel, vandalism, and invasion of privacy.

Earthquake Insurance

Earthquakes are usually not covered by standard property insurance. If you reside in an earthquake-prone region, earthquake insurance is a wise investment. It covers damages to your property and belongings caused by seismic activity.

Flood Coverage

Your standard property insurance policy usually doesn’t cover damages due to floods. You must invest in a separate flood insurance plan to protect your home and belongings that may be damaged due to this natural disaster. These policies cover damages irrespective of whether you reside in a flood-prone zone or not.

The Bottom Line

Picking the right property insurance means taking a close look at your needs. When deciding, consider the total value of your home and possessions so your coverage limits are adequate. Think about risks like flooding or earthquakes that call for add-on covers based on where you live. Don’t overlook things like swimming pools that could mean higher liability for injuries. And remember to insure expensive items like jewellery, art, or electronics that may need special riders

Working with an insurance professional can highlight the gaps in your current coverage. An insurer can bundle multiple policies and help you find a plan matching your budget and requirements. With the right property insurance plan, you can sleep easy knowing your home and belongings remain adequately covered.

Help us know you better!