Overview of Property Insurance:
The main essence of insurance is to make the policyholder or his dependants financially stable even after a loss be it life, health or a property. Policyholders are levied a small fee towards premium which will guarantee that the insurance company will bear the burden of sudden, uncertain loss occurring in future. This principle of insurance becomes more and more relevant when it comes to businesses, assets and properties as it guards against unexpected losses. A Property Insurance will offer coverage for companies, individuals and other related entities against natural and man - made perils. Property Insurance, apart from covering general properties like home, machinery, equipments, stocks, furnitures and fixtures, will also include liability covers.
You can choose what perils to protect your property against or choose a “all - risks” property insurance that will provide a comprehensive cover against a variety of risks. You can select the type of Property Insurance depending on the asset that you are seeking to insure and the peril against which you wish to insure against. For example, if you are choosing to insure your cargo which you are planning to ship to a client, you can opt for marine insurance.
Why should you opt for a Property Insurance?
Property Insurance refers to a wide category of general insurance. Here are some of the reasons as to why you should invest in a comprehensive Property Insurance.
- A lot of business depend on the machinery that they have. In case the machinery is lost, stolen or repaired, the property insurance will compensate the amount as it is mentioned in the policy.
- According to the insurance dictionary, the term “Property” refers to machinery, stocks, buildings, fixtures, furnitures and equipments. Property Insurance will cover the specified property against burglary risks, fire & allied perils.
- Consider the case of stocks. A large amount of goods and stocks are sent everyday through sea, air, land and rail. The business will incur a great deal of loss if the stocks are damaged or lost in transit. It becomes very important to consider your stocks are property and take a Property Insurance accordingly.
- In case of properties like buildings, dwellings and shops, the Property Insurance will offer a comprehensive cover against natural and man made damages.
- Any property that is important to your business must be insured. Else, in case of unforeseen damages to the property, you will not only face a major financial loss but your business will come to a standstill.
Types of Property Insurance:
Here are some of the common types of property insurance.
- Fire Insurance
A fire insurance policy will offer protection for manufacturing units, buildings, accessories, goods including raw material, finished goods, machinery and equipments against fire and allied perils.
- Burglary Insurance
A burglary insurance policy may be offered for a house or for a business unit. This policy covers assets like cash, securities and valuables kept inside the property and other stocks inside the property premises.
- All - Risks Insurance
An all - risks insurance policy is commonly offered for portable equipment, jewellery and other similar assets.
- Marine Cargo Insurance
This insurance covers against the risks when a cargo is in transit through rail, water, air or road. This type of insurance is specifically useful for import / export merchants, contractors, sellers, buyers and banks.
Other types of Property Insurance include marine hull, special perils policy etc.
Property Insurance FAQs:
- I am a shopkeeper looking to insure my shop and other properties. Which type of Property Insurance is recommended?
You can opt for burglary insurance policy. Or if you are specifically looking for a comprehensive insurance scheme, you can choose Shopkeeper’s Insurance policy which is offered by all leading insurance providers in India.
- Can I consider the baggage that I take during my travel as a “property” and avail a property insurance?
Yes, under specific criteria, you can consider the baggage to be a “property”. You can check if your travel insurance covers for baggage or opt for a baggage insurance policy.
- What is covered under Marine - Hull Insurance?
Marine (Hull) insurance covers the damage and losses to a machinery of vessel or the ship.
- What type of properties can be insured under Standard Fire and Special perils policy?
Under this policy, you can cover furniture, buildings, machinery & equipment, stocks, fixtures & fittings.
- What are some of the types of property insurance?
Insurance policies like Marine hull, marine cargo, standard fire and special perils policy, burglary insurance and engineering insurance policies offer protection to various classes of properties.