back Back to Blogs

What are the Different Types of Property Insurance

Posted on 09 Jul 2021

If you own a residential or commercial property, property insurance is a must for you. It safeguards property owners like you from incurring huge financial losses in case of an unforeseen mishap. For example, incidents like fire, theft, burglary, and natural calamities can cause severe damage to a property and result in gigantic losses for the property owner.

Property insurance provides financial reimbursement to the property owner in such instances, where his/her property and its contents get damaged. Depending upon the type or property and perils it cover, property insurance policies can be classified into various categories. Here are some common types of property insurance available in India:

icon

  • Homeowner’s Insurance

    This is the most common and most widely purchased type of property insurance in India. As the name suggests, homeowner’s insurance protects the owner of housing properties from incurring financial losses in case of any untoward incident. In fact, many lenders have made homeowner’s insurance mandatory for those seeking to finance their house.

  • Renter’s Insurance

    Renter’s or Tenant’s Insurance provides coverage similar to the homeowner’s insurance. However, this type of property insurance is exclusively meant to cover a tenant’s personal belongings stored inside his/her rented house. It may include clothes, jewellery, furniture, electronic appliances etc. Some policies also cover additional liabilities a tenant may incur towards his/her landlord.

  • Commercial Property Insurance

    This is another very commonly purchased type of fire insurance in India. This type of property insurance is meant to protect commercial properties, such as offices, warehouses, shops, restaurants, factories etc. Availing commercial property insurance is prudent for business owners to safeguard their working capital in case of any damage to their business premises and its contents.

  • Natural Disaster Insurance

    A standard property insurance policy may or may not cover natural disasters. However, perils such as earthquake, hurricane, storm, flood, cyclone etc. have the potential to completely destroy a property, resulting in huge financial losses for the owner. A special type of property insurance, known as natural disaster insurance, secures a property against such perils.

  • Fire Insurance

    Accidental fires are one of the most common mishaps that can cause huge damage to properties and its contents. Fire insurance is a special type of property insurance that provides coverage against accidental fires and allied perils, including explosion, implosion, lightning, impact damage etc. A fire insurance policy can be purchased for residential as well as commercial properties.

In Conclusion

Now that you know about the different types of property insurance available in India, you’re better placed to choose the right coverage for yourself. Also, it’s prudent to compare various offerings from different insurers and choose a policy that’s providing best coverage at an affordable price-tag. You can also buy property insurance online to get additional discounts on premium.

  • Property Insurance Policy
  • Product Code: 4413
  • Product UIN: IRDAN115RP0006V01202021

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. (Property Insurance, 4413 , IRDAN115RP0006V01202021)