Published in Economic Times on 30 July 2015, Written by Kapil Mehta
A shop owner faced a huge loss of his raw material and premises when water leaked through the ceiling of the bathroom of his godown. In locating the source of the leakage, the plumber ripped out the entire bathroom including the tiles and the walls. There can be several such situations that cause losses to the machinery, property, and goods. Property insurance policy is customized to the needs of the business and can mitigate such losses.
What is Property Insurance?
Property insurance protects buildings, machinery, stocks, and goods against a set of specified perils or risks. This includes fire, home, earthquake, and machinery breakdown insurance. Property is insured in two ways: Open Perils and Named Perils. Named perils policy covers damages that are listed and named in the policy. In named perils, the insured has to prove that the damage is according to the peril listed in the policy. Open perils policy covers all the risks except the perils listed as an exclusion. An Open perils policy is also referred to as an “All risk” insurance policy.
What are the benefits of the scheme to the SME?
Taking property insurance can have many advantages. The property insurance cover protects from a lot of segments- physical damages, terrorist attacks to natural calamities. The premium of these policies is low and affordable. Insured has the option to insure the entire property or contents only, or both. A company can choose the limits of the sum insured for coverage offered depending on their insurance needs. An SME can get the policy customized as per their needs by taking add-on covers in the policy like loss of rent cover, keys and lock replacement cover, employee compensation cover, and public liability cover.
What are the points to keep in mind in buying property insurance?
Before buying the insurance for your office premises or factory, evaluate the risk proneness of the area and the premises. Remember that premium would vary according to the extent and type of cover. Make sure you know about the claim process properly. The firm should always provide genuine details in order to get the best coverage and hassle-free claims
Who can buy property insurance?
*Owner of Building and contents such as household articles, furniture, etc. *Educational/ Research Institutions. *Hotels, Boarding, Lodgings, Hospitals, Clinics, or such service providers. *Industrial and Manufacturing Firms. *Godown Keepers. *Bailees, Lessor, Lessee, Banks, Financial Institutions, Mortgagors, Mortgagees. *Traders in stocks. *Trustees, Charitable Institutions. *Transporters and C & F Agents.
How can SMEs buy property insurance?
An SME should actively seek information about cover benefits, exclusions, and premium details under the policy from the insurance intermediary. Premium depends upon perils to be covered, the value of items covered, usage of premises insured, and location details of the property. A proposal form stating all required details is filled out by the company. Make sure information is accurate, complete, and signed by the authorized person in the company. Then the company should submit the necessary documents along with the form to the insurer. Finally, payment should be done in order to commence the policy.
At SecureNow Insurance Broking firm, we help you find what’s right for you and your business. Just submit your basic details with us: your name, mobile number and email id, city and we will get back to you within 24hrs to understand your requirements. We believe in tailoring products for business specific requirements and hence, have dedicated teams that will guide you for the best deals and optimum coverages. We offer instant online property insurance even for specialised occupancies such as: clinics and medical establishment.
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.
