Property Insurance: 7 Things To Know Before Buying

Property insurance necessary as it will financially protect the owner in the event of damage or theft. Property insurance includes protection against damage of buildings, machinery, stocks etc against fire or burglary risks and so on.

There are different types of property insurance depending on the type of cover you are looking. Some insurance not only covers damage caused due to earthquake, tsunami, and floods but also the contents in the home.

Here are 7 things to know about property insurance:

1) Burgely insurance policy covers property present in the insured area which includes stocks, goods owned. It also covers cash, valuables, securities kept in a locked safe or cash box if you have specified in the policy.

2) General insurance usually offers cover for jewellery or portable equipment etc. This cover is generally offered selectively. The product of the policy may vary from company to company.

3) Fire insurance is one of the most popular property insurance. The fire insurance policy offers protection against any unforeseen loss or damage or destruction of property caused due to fire.

4) Under fire insurance, contents like machinery, plants, equipment and accessories; goods including raw material, material in process, semi-finished goods, finished goods, packing materials etc in factories, godowns can be covered.

5) Marine Cargo insurance covers transits by water, air, road or rail, Registered Post Parcel, Courier or a combination of two or more of these.

6) When you have to claim for property insurance carry the following documents for easy process.

• Duly completed and signed claim form
• Photocopy of policy
• Copy of FIR
• Final report from police
• Copy of all invoices, price lists, and repair estimates

7) The value of the property is calculated using a method called reconstruction value, which is decided on the basis of how much it would cost you to reconstruct the house if it is damaged.

8) Individuals who are planning to buy should compare premium rates, claim settlement ratio and reputation of the company.

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