Types of Property Insurance and Property Insurance Benefits

property insurance

As we know that the buildings we have, whether it be houses, offices, warehouses, etc., are investments with high value. For that, it is very important to protect it from risks that can cause damage and destruction. With so many risks that can come to the building at any time, to what extent and what efforts have you prepared to overcome them all?

Of course, these buildings need maximum protection that can be applied at any time if the risk befalls your building/property. Property (home/property) insurance is one of the most appropriate steps to protect it so that you no longer have to worry about damage or destruction.

Property insurance can provide financial protection for the insured building that is listed in the insurance policy in the event of damage or destruction, which is caused by risks that are also listed in the property insurance policy.

2 Types of Property Insurance

In general, property insurance is divided into two, namely home insurance and business insurance.

Home Insurance

Home insurance is one type of standard property insurance that can protect personal (private) homes.
The risks covered by home insurance are:

  • Fire
  • Lightning
  • Explosion
  • Fall of Airplane
  • Smoke

Business Insurance

Especially for business insurance, it has a role that is almost the same as home insurance, but for the type of property that is protected several buildings are covered by a business, such as:

  • Factory
  • Shop
  • Mall
  • Office

And also industrial property such as:

  • Factory
  • Warehouse
  • Mall

Expansion of Property Insurance Collateral

  • Storms
  • Riots
  • Protection of valuables
  • Protection in case of injury to third parties
  • Financial protection in the event of damage to the insured's property
  • Temporary accommodation if the house/building is damaged and can no longer be occupied

How much is the property insurance premium?

To calculate property insurance premiums, you must know what TSI (Total Sum Insured) is. Especially in TSI Property insurance, it is the total value of the assets as a whole including the price of the building and the contents of the building, the value of this property which will later be given to the insured from the insurance party (the insurer).

Get a sense of security by having the best property insurance coverage and premiums for whatever your property type. Whether it's a house, office, apartment, or place of business, it can be the subject of property insurance

Property insurance benefits

Insurance protects the policyholder's finances when there is a risk. Likewise property insurance. Many consider this insurance not too important to have.

No one has ever known that there is a risk of disaster that could occur. By having property insurance,  policyholders will certainly be calmer, including when leaving the house for a long time. More importantly, this insurance not only protects the risk of your residence or business but also protects the investment that you have made for your business.

What does property insurance cover in general?

For private home insurance, usually, only standard risks such as fire, explosion, lightning, and aircraft crash are covered. However, you can extend the risk of this coverage by paying an additional premium. The expansion of this coverage includes risk coverage due to riots or riots, landslides, storms or hurricanes, theft, etc. depending on what the insurance company offers. Ask for details about this to the agent or insurance company. That way, you can determine what risk you want to cover.

Meanwhile, for business insurance, the expansion of the coverage also varies, such as protection for the equipment in a shop or shop or warehouse or shop, machinery, and merchandise. There is also a business interruption policy or business interruption and various other products.

Pay attention to the premium

The policy for determining the amount of premium depends on each insurance company. Generally, the amount of premium is also determined by the location and use of the building. For example, for a residence, you will see how many residents live in it; track record of the location of the house, such as records about floods, the level of criminal theft, and so on; as well as the value of the property in the house which is also insured.

Apart from that, another determining factor is the quality of the building. Usually, in property insurance, there are three classes of buildings. First, fireproof buildings; second, relatively fireproof, and third, prone to burns. The amount of premium for each class is different.

Know this before buying property insurance

Before buying a property insurance product, make sure the following points:

  • What basic risks are covered
  • Expansion of risk guarantee offered
  • For the risk of natural disasters, what disasters are included in the list of covered
  • For insurance that also covers property in it, whatever is covered
  • The amount of premium and the choice of the payment mechanism
  • The sum insured, and the things that are excluded
  • How to submit a claim if there is a risk
  • Policy  term and other matters related to the policy validity period

Don't forget, you are also important to make sure if the risk that occurs causes the entire house to be sold out, whether the insurance company will cover it completely or other provisions cause coverage not to cover everything.

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