Different Types of Property Insurance Policies Available in India

As an umbrella policy, property insurance comprises various insurance policies, which you can buy as per your requirements. Here are some of the different types of property insurance policies available in India-

1. Office Insurance –

Are you successfully running a business? Surely, you must be very proud of what you have created which is the result of our efforts. However, if any misfortune happens tomorrow, your financial dreams could be shattered. Fret not! With an office insurance policy, you can secure your office premises. It is an important property insurance policy that offers complete coverage to your office.

An office insurance policy offers the following coverages –

Protection from a wide set of perils like floods, lightning, riots, strikes, cyclone, storms, etc.
Protect against infidelity/dishonesty of employees
Secure the content against burglary, fire, etc.
Offer personal accident cover for the owner

Case: Mr. Rajan Shah is a happy man. After years of hard work, he started his business venture in Delhi. While he is busy beautifying the interiors of his office, he also plans to buy an office insurance policy so that any unexpected situation doesn’t derail the growth of his business. In addition to offering coverage against various perils, like strikes, fire, earthquake, etc.; the policy will also cover office content against burglary. Rajan is also planning to buy personal accident cover so that in case he meets with an accident, he or his family gets some financial assistance from the insurance company.

2. Construction all risk –

As a contractor, it is necessary for you to honor the deadline. However, a construction site is susceptible to various losses and damages, like, theft, damage, etc. To get coverage against such losses, it is inevitable to buy a construction all-risk insurance policy which is specifically designed to cover various civil engineering projects like buildings, flyovers, airports, sewage treatment plants, etc.

A Construction all risk insurance policy covers the following –

Fire and lightning
Collapse, collision
Theft & burglary
Water damage, storm, flood
Landslide, Rockslide

Case: R.J Real Estate is a leading name in the realty sector. Though the company always follows strict global norms to ensure the complete safety of its project, during its last residential project, the company had to incur major financial losses when heavy rainfall damaged its construction site. Luckily, the company had a construction all-risk insurance policy, and immediately after the loss, it informed the insurance company which sent a surveyor to inspect the damaged site. After carefully reviewing all the details, the insurer settled the claim and curtailed the financial losses to some extent.

3. Engineering all risk –

Projects like storage of equipment, expanding or moving a facility, etc.; will leave your company open to significant risks. It makes sense to go with an engineering all-risk insurance policy which will offer protection against various kinds of risks.

An Engineering all risk insurance policy offers the following coverages –

Covers all types of risks associated with storage, assembly, and testing of plant and machinery
Covers incepts from the time the first consignment unloads at the project site till it terminates on completion of testing or handover of the project to the principal

Case: R.J Infrastructure Pvt. Ltd. is responsible for various civil engineering projects in India. Many of its projects require heavy investment and working underwater. The company has purchased an engineering all-risk insurance policy to get coverage in case something mishap arises. The policy covers all risks that may arise due to the storage and testing of plant & machinery. Last month, an accident happened at one of its sites during the assembly of machinery. The company informed the insurer who after carefully reviewing the situation settled the claim.

4. Factory and warehouse insurance –

Any unforeseen event can disrupt the smooth functioning of the factory and warehouse. If such is the case, it makes complete sense to go with factory and warehouse insurance, which is an important add-on for an industrial set-up that is involved in the business activities like manufacturing, storage of goods, etc.

A factory and warehouse insurance policy offers the following coverages –

Covers unoccupied or vacant warehouses from accidental damages
Offers comprehensive cover that comprises content insurance, money insurance, stock insurance, public liability insurance, etc.

Case: Recognised as one of the leading clothing mills, R.J Mills is situated in Pune and has its offices spread throughout India. As the company also exports to eastern countries, it has its warehouses situated near the coastline. The mill owner should go for factory and warehouse insurance to cover the mill and warehouse from various losses or damages. Moreover, the mill owner has also purchased unoccupied building insurance to cover stocks and assets in their absence.

5. Motor fleet insurance –

With an expansion in business, companies tend to purchase more vehicles to meet their burgeoning needs. Instead of buying separate motor fleet insurance for each vehicle, it makes sense to go with a motor fleet insurance, which covers four or more vehicles under one insurance plan. It means, by paying insurance premiums only once, the company can cover all its vehicles under one plan. It is a crucial part of a property insurance policy that ensures complete coverage for your vehicles under one head.

A motor fleet insurance policy offers the following coverages –

Covers losses or damages to vehicles by fire, burglary, accident, or any other unexpected causes
Covers third-party injury, death, or damage caused by your vehicle

Case: T.S Engineering has a long fleet of trucks for ensuring the safe transportation of goods throughout the country. Recently, the company has purchased a motor fleet insurance policy that covers all its vehicles against both natural and man-made risks, like fire, burglary, accident, flood, theft, etc. Moreover, instead of buying a separate insurance policy, T.S Engineering has bought a comprehensive motor fleet insurance, which covers all its vehicles under one policy.

6. Art Insurance –

Indeed, any artwork is valuable, and therefore, if you are a dealer of fine art, musical instruments, statues, sculptures, and other precious collectibles, it is essential to get these items insured. Art insurance is the right way to secure your valuable items.

An art insurance policy covers the following –

Fine Art
Books
Pictures/Paintings
Antique and period furniture
Musical Instruments
Statues and sculptures

Case: R.J Art World was established in 2009 by Mrs. Madhu Roy. Hailing from a family of collectors, she actively takes part in the promotion and recognition of various upcoming and emerging artists from throughout the country. The gallery stocks paintings, sculptures, etc. Mrs. Madhu should buy an art insurance policy to insure all the valuable items in her art gallery. In the case of any loss or damage, the policy will come handy by offering coverage against both natural and man-made factors like burglary, theft, fire, flood, earthquake, etc. Mrs. Madhu has a fire insurance policy as well, which is part of property insurance. It means, if due for any reason, a fire erupts at the gallery and damages her items, the insurer will give her financial assistance.

What are the different Types of Property Insurance Policies Available in India?

Property Insurance

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