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Property Coverage Explained: What Does Your Insurance Really Cover?

Posted on 11 JUN, 2024
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So, you're considering getting property insurance, or maybe you already have one but want to know more about what's included and how to get the most out of it. Well, you've come to the right place. Let us break it down for you in a simple way.

Property insurance

What exactly is property insurance?

First, we will learn the definition of this category of insurance. You can think of property insurance as a safety net for your precious residence. It is there to protect your home and belongings, even in the event of an unexpected event such as fire, theft, or a catastrophic storm.

What are the common types of property insurance available?

Property insurance protects your home or business from financial losses caused by various events. Here are some common types available in India:

Renter’s insurance

It covers your belongings in a rented property against damage from natural disasters, theft, or vandalism. It may also cover liability to the landlord and can be used for business purposes if you store inventory in a rented unit.

Homeowner’s Insurance

As a homeowner, you must have a homeowner’s insurance policy. This policy financially protects your property structure and its contents from a range of perils like fire, theft, earthquakes, and even explosions. The policy can also extend to cover damage caused by bursting pipes or overflowing water tanks. Some plans offer additional coverage for valuable items like jewellery or artwork.

Commercial property insurance

This insurance for businesses safeguards your commercial property, including buildings, equipment, and inventory, against similar events covered in homeowner’s insurance. You must note that this is distinct from commercial general liability insurance.

Fire insurance

This policy covers damage to both commercial and private property caused by accidental fires. It won't cover fires due to negligence.

Public liability insurance

This insurance is particularly relevant for business owners. It shields them from financial responsibility if a third party suffers property damage while on their business premises. This type of insurance is often mandated by law for specific industries like restaurants or car repair shops.

What does property insurance cover?

Now, it's time to check the property coverage. This insurance policy protects your home and belongings from various unforeseen events. It can help you financially recover from damage caused by:

Natural disasters

It includes events like fire, lightning, hail, and windstorms. The insurer can help pay for repairs to your roof, walls, or other parts of your home's structure.

Theft and vandalism

If someone breaks into your home and steals your belongings or damages your property, the insurer will cover the expenses of replacing/repairing the items. You also receive coverage if your property is vandalised.

Contents damage

Your policy may also cover damage to your personal belongings inside the home, such as furniture, electronics, or valuables.

What is not covered by property insurance?

Yes, as with everything, there are a few exceptions. For example, damage by termites or mould, nuclear war, pre-existing damage due to wear and tear, etc., are usually not covered.

Why should you get property insurance?

Well, in addition to the obvious peace of mind, having property insurance can save you a ton of money if something goes wrong. Imagine lightning strikes your house. It would cause a lot of damage to your home. Through insurance, you can get help covering the cost of repairs.

How do you make a claim?

This is a step-by-step guide to making a claim on your property insurance policy.

First, gather all the necessary documents, including a police report detailing the incident and repair estimates from reliable sources. These documents are supporting evidence for your case.

Now, it's time to close your deal by paying your deductible, which is the amount agreed upon to support your claim. Once this is done, your insurance company swings into action. They analyse the situation, assess compensation, and determine the appropriate coverage for your plan.

Once the necessary paperwork and payments are completed, you can expect your insurer to step in, providing assistance to cover the cost of repair or replacement.

Wrapping Up

In a nutshell, property insurance is like having a safety net that safeguards you against unforeseen circumstances. As a property owner, you can sleep easy knowing you've got a backup plan. Remember, it's always a good idea to check the fine print on your policy and understand what it covers. Talk to your insurer to understand the inclusions, limitations, and exclusions so that you know the exact scope of coverage.

Help us know you better!

This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Fire Insurance, 4010 , IRDAN115P0010V01200607)