ImageProperty Insurance – Buy Commercial Property Policy Plan Online in India

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  • > The Benefits of Property Insurance Policy
  • > Quick Guide to Property Insurance Policy
  • > Frequently Asked Questions
  • > Insuropedia
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The Benefits of Property Insurance Policy

Office Insurance

Protect the office from damage and burglary Cover for fire, earthquake, riots, flooding and similar perils. Also include theft, burglary and computer breakdown.

Construction and Engineering All Risk

Cover damages during the project or construction stage of a venture. Specialized insurance that caters to damage before a project is completed. Include loss of profit due to delays as well.

Factory & Warehouse Insurance

Insure damage to warehouses and goods stored there. Effectively insure goods and the warehouse even when there is frequent movement of material, loading and unloading of items.

Motor Fleet Insurance

Cover all the company vehicles in one single insurance. Fleet insurance considerably reduces paperwork by having just one insurance policy. Gives you more negotiating power with insurers.

Quick Guide to Property Insurance Policy

Definition of Commercial Property Insurance Policy

A commercial property insurance policy is a personalized plan designed to cover for all damages caused to your property. It covers your property and the content from natural calamities, thefts, accidental damages, etc. Commercial property insurance policy is highly recommended as it safeguards your finances from unforeseen losses due to various risks associated with your property/premise.

Need for Property Insurance Policy

It is necessary to buy a property insurance to avoid the financial burden that may arise due to any mishap to your home or property.

  • A property insurance covers for both the structure as well as the contents of the manufacturing plant, warehouse and office
  • Common risks such as fire, riot, theft or natural calamities such as storm, flood and earthquake are covered
  • Property insurance can cover vacant premises as well when production or usage is suspended. This is known as silent risk
  • Such an insurance covers both partial as well as total loss. Policy can be customized to provide for re-instatement cost of the asset
  • The cost of a property insurance is a miniscule amount, less than 0.5% of the asset value. So, this can be absorbed as an operational cost whereas an uninsured loss would lead to significant capital erosion.

Functions of Property Insurance

There could be broad functions of property insurance.

  • Own material damage: This part would cover losses to your assets for the specified risks. In case of damage, policy will pay for repair or replacement.
  • Loss of profit: For the duration for which the assets are repaired or replaced, the factory may have to be shut down. This policy would then indemnify you for the loss of gross profit and standing expenses during such period.
  • Third party loss: In case of any damage to a third-party property and bodily injury due to an accident at your premises, the policy would pay for your legal liabilities.

Types of Property Insurance Policy

We have personalized commercial property insurance plans for all your needs. The various types of property insurance that we offer are:

Salient features of Property Insurance Policy

A property insurance has several features. Some of the prominent ones are:

  • Re-instatement clause: the re-instatement clause works on principle of indemnity. This essentially means that the damaged property or asset can only be replaced with a new asset of the same kind, type and specifications.
  • Option to buy add-on coverage: most property insurance policies cover a few specified perils. It is possible to enhance the coverage by choosing add-ons.
  • Option to buy supplementary all-risk plans: Apart from the standard fire and special peril insurance, several supplementary plans exist such as: machinery breakdown, portable equipment insurance, electronic equipment insurance, etc.

Benefits of Property Insurance Policy

  • Named perils: the 12 perils of standard fire insurance are all covered - fire, lightening, explosion/implosion, aircraft damage, riot/strike/malicious damage, storm/cyclone/typhoon/flood, impact damage, subsidence/landslides, bursting of water tanks/apparatus/pipes, missile testing operation, leakage from automatic sprinkler installations and bush fire.
  • Commonly used add-on: earthquake, impact damage due to own vehicles, forest fire, etc. are covered
  • Commonly added clauses: re-instatement value, local authorities’ clause, designation of property, escalation clause and omission to insured are the added clauses for benefitting the insured.

Coverage under Property Insurance Policy

Below list is covered under a property insurance policy:

  • Structure of the property
  • Stocks
  • Plant and machinery
  • Furniture
  • Furnishing items
  • Valuable or expensive items
  • Precious gems and jewelry
  • Electronic goods

Note: This is not an exhaustive list. Your policy document will have details of all the items covered under your property insurance policy.

Exclusions under Property Insurance Policy

Below are some of the exclusions under a property insurance policy:

  • Proven willful loss or damage to property or commodities
  • Loss or damage due to wear and tear or depreciation
  • Loss due to war
  • Loss or damage to electronic equipment caused due to excessive use
  • Pre-existing damages

Note: This is not an exhaustive list. Your policy document will have details of all the exclusions that are part of your property insurance policy.

Claim process for Property Insurance Plan in India

Below steps must be followed to make a claim for the property insurance:

  • Inform the insurer immediate about the damage caused along with a rough estimate of the damaged valuables by filling a duly signed claim form. Do not undertake the repair on your own at this stage.
  • A surveyor is appointed to scrutinize the damage and provide a report.
  • Submit original documents as required by the insurance company.
  • After a go ahead from the insurance company, you can carry on your repair work and claim for the expenditure within the limits of your sum assured.
  • Then you’ll have to share the original bills and receipts, net liability will be computed based on the surveyor reports and your bill will be settled (deductibles may apply based on the terms and conditions).

Documents Required for Commercial Property Insurance Policy

Documents require to claim for a commercial property insurance varies with insurance company. Below is the list of common documents required to claim for property insurance:

  • Duly filled and signed claim form
  • Building plan
  • FIR copy or fire brigade report, document showcasing reason loss or damage
  • Bills and receipts
  • Damage certificate in case of machinery and equipment
  • KYC documents
  • Cancelled cheque or bank passbook as NEFT mandate for receiving claim amount

Frequently Asked Questions

  • Industry Specific - Property insurance is an umbrella term that applies to different kinds of property. These range from Standard Fire & Special Perils Policy, Marine (Cargo), Marine (Hull), Engineering and Burglary Insurance policies. The insurance allows for clauses that are specific to your industry. This helps you to mitigate general business risks but also risks specific to your industry.
  • Wide Coverage - Property insurance provides cover against a wide range of perils and risks. These include burglary, fire, floods, inundation, earthquakes, explosion or implosions, riots and arson. The insurance is highly customizable and can be extended to include terrorism risks. Loss of profit because of these perils can also be covered.
  • Simple Documentation - Under a single document you can get a combination of cover that insures the physical structure of the building and its content that may range from machinery, equipment, raw materials, packaged goods, home appliances, electrical appliances, finished products and many more. The process of changing assets insured is also easy. You need to provide any changes, once a month, and they are factored in after the premium is paid.
  • Property insurance policy has a wide scope and extends cover against damage of buildings, homes, heavy machinery, goods in transit, and equipment. It is a cost-effective way of keeping your assets secure. Seek the help of a good insurance broker (like SecureNow) to get good advice.
    While commercial property insurances do not have a mandatory clause associated with it, most banks or NBFCs require a property insurance associated with your property loan that you want to avail. Moreover, it is always advisable to secure your property with an insurance from unforeseen conditions that may arise.
    To buy a commercial property insurance plan it is important to compare values and coverages with respect to the requirements that you have for your plan. Most leading insurance companies provide a property insurance: HDFC Ergo, New India Assurance, Royal Sundaram, SBI General and Oriental General Insurance are some of the top insurers.
    There are various parameters that determine the cost of premium amount; some of these are listed below –
  • The type of property insurance policy.
  • The nature of risk involved in the business.
  • Past claim settlements etc.
  • Insuropedia

    Which add-on covers are recommended for property insurance?

    We suggest policyholders consider subscribing for add-ons available under the property insurance cover. Below we cover an exhaustive list of add-ons for you to evaluate the relevant ones for your property insurance –...
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    How does an insurer decide on the premium to be charged for property insurance?

    Insurers follow a structured approach to a price premium for underwriting each risk. That’s how a premium is decided to be charged for property insurance. Below is the list of steps that they take –...
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    What property Insurance should SMEs buy?

    Property Insurance is an essential tool that helps in smooth functioning of business even after a mishap. Every SME owner remains sceptical to buy property insurance but it should be the first priority...
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    Why SecureNow?

    Deep Product Knowledge

    We have specialized underwriters and tie-ups with international experts.

    Cost-effective Insurance

    We work with all insurers to get you the best options- both in terms of price and features.

    Quick Turnaround Time

    Cover notes are issued within hours of request. This documentation is sufficient for any contractual requirement.

    Strong Claims Support

    We manage all aspects of your claim - from preparing documentation to follow-up with the insurer.

    Value-Added Services

    We will advice you on risk management best practices.

    Policy Administration System (PAM)

    See all your contracts renewal information in one place. Place service requests on PAM.