The most important reason to purchase property insurance is the uncertainty of the future. You can’t predict what would happen in the next moment, and therefore, to get complete coverage against life’s uncertainty, it is essential to buy a property insurance policy. A property insurance policy is an umbrella policy that includes office insurance, factory & warehouse insurance, construction, and engineering all-risk insurance policy, art insurance, and motor fleet insurance.
It is necessary to purchase property insurance for the same reason as you need to ensure your health, car, and any other costly items. Any loss or damage to your property could have both emotional and financial consequences. However, if you have the right property insurance policy, it would be feasible to mitigate the financial loss.
Here are some important reasons to buy property insurance
- Natural perils can strike anytime
Unfortunately, natural calamities, like floods, earthquakes, cyclones, etc.; are the reality of today’s life. What if an earthquake strikes and causes severe damage to your factory? You can’t control nature’s flurry, and therefore, it is good to purchase a property insurance plan to protect yourself against all sorts of ‘Acts of God or natural perils.
Man-made risks can cause severe damages
Many times, even the trendiest safety gadgets and security equipment fail to secure your property. As a result, man-made threats like riots, terrorism, strike, thefts, etc.; can arise anytime. By purchasing an office insurance policy, you would be able to get complete protection against theft, burglary, etc.
Business loss can arise to disrupt your growth
Imagine a scenario, where you would have to face heavy losses due to the breakdown of your machinery. In such a case, if you have a suitable office insurance policy, you would be able to get compensation against business loss incurred during the time period.
Accidental damages can arise
While most people do not pay heed to this point, however, office equipment like furniture, appliances, etc.; can cost a lot if you put them together. Hence, getting content insurance is necessary to get financial coverage in case of any loss or damage. If it is mentioned in the policy document, you would also get coverage in case of theft of items like neon signs, and hoardings. This coverage helps in encouraging your business, etc.
At last, you should purchase a property insurance policy to get peace of mind. You can pray and hope that natural perils would never strike, but knowing that your most precious asset is secured in the event of a crisis, is well worth your expenses. Peace of mind is much more valuable than any other thing. Indeed property insurance policy ensures that you focus on your business only without worrying about other things.
Read more: What is the Local Authorities Clause in Property Insurance?
Case
K.S Art Gallery is a renowned name in the field of art & literature. The gallery houses the work of some great artists, which includes paintings from both India and abroad. Last year, the gallery had to go through a tough situation when a fire happened at the gallery due to a short circuit in power switches. Though the flames were doused on time; it caused a loss of Rs 5 lakh.
The monetary loss compelled the owner of K.S Art Gallery to think of ways to avoid the loss.
Solution
The situation would have been different if K.S Art Gallery had bought art insurance (which falls under a property insurance policy). Here, the art insurance company would have covered the losses or damages which happened due to the fire. The owner of the gallery would have only needed to inform the art insurance company after the loss which would have appointed a surveyor to inspect losses or damages. On the basis of the report submitted by the surveyor, the art insurance company would have settled the claim.
Thanks to an art insurance policy, K.S Art Gallery would have been able to deal with the financial loss without putting pressure on its finances.
About The Author
Shivani
MBA Insurance and Risk
She has a passion for property insurance and a wealth of experience in the field, Shivani has been a valuable contributor to SecureNow for the past six years. As a seasoned writer, they specialize in crafting insightful articles and engaging blogs that educate and inform readers about the intricacies of property insurance. She brings a unique blend of expertise and practical knowledge to their writing, drawing from her extensive background in the insurance industry. Having worked in various capacities within the sector, she deeply understands the challenges and opportunities facing property owners and insurers alike.
