Residential and commercial properties are exposed to many natural and man-made perils such as earthquake, tsunami, fire, storm, theft, and burglary. These unforeseen perils can occur anytime and cause severe damage to the property and its contents, resulting in huge financial losses for the property owner. Property insurance can protect the property owner from incurring such losses.
What is Property Insurance?
Property insurance is an umbrella term used for different types of insurance products that are meant to protect residential and commercial properties from getting damaged due to unforeseen perils, such as earthquake, fire, storm, theft, burglary, riot, etc.
Some property insurance products also extend the coverage to the contents of the properties, including clothes, jewellery, furniture, and electronic appliances, among others.
What is covered by Property Insurance?
A comprehensive property insurance plan usually covers the following:
Unforeseen loss or damage to the insured property, caused by a listed peril
Additional living expenses incurred by property occupants
Financial loss due to theft or burglary
Damage due to water
Damage to the contents and personal belongings stored inside the property
Any resulting compensation that the property owner may have to pay
What is not covered by Property Insurance?
Not all losses or damages are covered by fire insurance. Below are some common exclusions of standard property insurance plans:
Employee or business partner theft
Any loss or damage to vehicles
Normal wear and tear of properties
Losses due to power surges, operator mistakes etc.
Losses or damages arising due to faulty design or manufacturing
Losses or damage due to war or nuclear risks
Wilful or intentional damages
Who can purchase Property Insurance?
Property insurance is basically meant to cover losses for property owners. There are different types of property insurance plans offered by insurance companies for different types of property owners. For example, commercial property insurance and homeowner property insurance.
Be it a restaurant or café owner, factory owner, builder, renter, or an apartment owner, property insurance can be purchased by any property owner. In fact, every property owner should buy a property insurance policy to protect himself/herself from humongous losses he/she may incur in case of an unforeseen incident.
Not all property insurance provide the same coverage. For instance, some of them may exclude damage due to natural calamities like earthquake, tsunami, flood etc. from their scope of coverage. Hence, before buying a policy, it’s imperative to read carefully about its inclusions and exclusions.
A better option is to compare and buy property insurance online. This will allow you to get the best policy for your property, which is perfectly suited to your needs and preferences. Many insurance companies, including ICICI Lombard, offer property insurance in India. Do your research well before zeroing on a particular policy.