A property, whether it be your home, office, factory or warehouse is one of your most prized possessions. Even a minor damage to it can affect your finances a lot. The purpose of all these properties is also something that makes you value it more than anything in your life. While a home protects you and your family from any outside dangers, a factory or an office is the source of your overall income without which survival seems a distant dream.
Insurers offer a comprehensive property insurance policy that reimburses the cost of damage to your beloved possession thus, saving you from huge financial expenses for which you might not have been prepared for! A property insurance policy can be availed by homeowners, renters as well as office or warehouse owners.
It is an umbrella cover that includes homeowner’s insurance, fire insurance, burglary insurance, office package policy, shopkeeper’s policy etc. One can avail a separate policy according to one’s requirements.
Let’s try to figure out the different types of risks that are covered by a property insurance policy through certain examples:
- Kapil Sinha owns a house in a hill station which he visits just once or twice in a year. Due to work commitments, he is not able to visit it in a particular year and when he does so after a long period of time, he realises that the roof of the house has collapsed probably due to heavy snowfall in the region during the last winter. Due to the resulting waterlogging, some of the contents of the house were also damaged including some prized artworks which he had collected over time.
Insurance Cover: A property insurance policy will cover the cost of repair or replacement of the roof that was damaged due to the weight of the heavy snowfall. However, the damage from the resulting water will not be covered under the property insurance unless a rider has been availed for the same.
- Suraj Kaushik owns a furniture shop in a crowded market in Vadodara. Due to some mistake, the shop catches fire and some of the stored furniture is damaged also causing complete destruction of the wall of the adjacent shop.
Insurance Cover: A fire/shop insurance policy will cover the cost of damage and replacement of the walls and the contents if the contents have also been insured. The cost of damage to third party property will also be covered under the same policy. A fire insurance policy (a part of property insurance) can be availed separately to get better coverage in such cases.
- Recently, burglars sacked Dhiman Singh’s office with the intention of breaking the safe with business cash. They stole many prized possessions including television, laptops, cash, and paintings. They also set fire to the stocks and important files kept there.
Insurance Cover: The insurer will assess the amount of damage considering the market value of all contents including stocks. The estimated market value of the same will be covered and reimbursed to Mr. Singh. However, in normal cases, jewellery, paintings, artworks or diamond rings will not be covered under the policy. These can be covered with the payment of higher premium.
- Sumeet Vohra owns a chemical factory. Many vendors, inspectors and customers often visit the factory. Once a group of representatives from one of his clients visited the factory. One of the members got injured when he accidently fell off a lime block. He needed to be hospitalised for two days to recover from the fracture and strain. Sumeet faces a claim of about Rs. 12,000 from the representative for the treatment.
Insurance Cover: A property insurance policy will cover any medical costs due to injury to any third party in the property premises. Such things are unavoidable even after taking enough safety precautions.
- Malik Shaikh has a rented house which is damaged due to severe lightning that destroys the roof, walls, and some of the contents of it. He has not availed any kind of property insurance and had to bear the brunt by replacing the contents without any financial help. He had never thought that a lightning strike could destroy the house and the contents to such an extent. The total cost of repair and replacement come out to be at least half of his year’s savings.
A Lesson & Insurance Cover: Shaikh has taken a lesson out of his experience and has bought the fire insurance for his household goods. He also suggests the owner of the property the same, as the owner too had no insurance and had to bear all the repair cost by himself.
Buying a property insurance policy is not as rare as it used to be now. However, numerous choices bring their own challenges and you must compare multiple policies and their conditions before buying.
Online insurance advisors SecureNow, offer quick analysis and guidance for such insurance plans. They also help in management of the policy and claim settlement when needed.
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