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Different types of property insurance policies in India

Posted by Royal Sundaram on 03 Oct 2018

Different-types-of-property-insurance-policies-in-India

Every natural or man-made disaster leaves behind a trail of huge destruction to life and property. In fact, the frequency of such disasters has increased in India in the last few years and the losses from such disasters have reached over millions of dollars. Thus, we need to conduct a proper financial planning as it will help us to reduce the financial burden. And this can be done with an adequate property insurance.

Property insurance is a type of insurance policy that provides financial reimbursement to the owner of the property in the event of damage or theft. In simple terms, this policy provides protection against most risks to property such as theft, fire, weather damage, etc. A property insurance offers coverage to individuals, companies, and other related entities. Such policies, apart from seeking cover to property also provides liability coverage, in case someone other than the property owner is injured while on the property.  

Here’re some of the common types of property insurance policies in India –

Standard fire and special perils policy:

An insurance that protects your property against fire damage is known as fire insurance. This is the most popular type of property insurance. It offers protection against any loss or damage caused to the property due to fire or other perils that are covered under the policy. The different types of properties that are covered under this policy are shops, offices, dwellings, hospitals, place of worship, etc.

What’s covered under fire insurance policy?

Listed below are the things covered under a fire insurance policy –

  • * Fire
  • * Lightning
  • * Aircraft damage
  • * Explosion
  • * Natural disaster
  • * Landslide/rockslide
  • * Terrorist activity
  • * Bush fire
  • * Overflowing of water tank
  • * Natural disasters

 

Exclusions in fire insurance –

 

  • * Damage due to war, invasions, civil war, war like operations, etc.
  • * Loss or damage due to electrical machines, short circuit, leakage of electricity, excessive pressure, etc.
  • * Loss or damage due to theft or expenses incurred by any kind of terrorist activity are not covered under the policy
  • * Loss or damage caused by war and war like operations such as nuclear perils, pollution or contamination

 

Tips to file fire insurance claim?

 

  • * To file a claim against any unforeseen event, you need to inform the insurance company first.
  • * Afterwards, you will be required to show a detailed information of all damaged properties
  • * You need to co-operate with the surveyor, if he asks for any additional information
  • * You should help your surveyor in best possible way. Although, this may seem a little hassled, but it will help you during your claim settlement process.

 

Documents required to file fire insurance –

  • * FIR copy
  • * Photographs
  • * Duly filled claim form
  • * Final investigation report
  • * Previous claim record, if any
  • * Previous claim record
  • * Forensic report if requirement
  • * An authorized copy of the policy

 

Burglary insurance:

A burglary insurance is a type of insurance policy offered for a business enterprise or a house. This policy covers assets like stock/goods owned, cash, valuables or securities kept inside a safe box or cash box.

What’s covered under a burglary insurance?

  • * Loss or damage to insured property due to housebreaking or burglary
  • * Damage to the premises caused by burglars during burglary or house breaking
  • * It covers armed robbery or hold up
  • * Forced and violent entry

 

What’s not covered under a burglary policy?

Here’s a list of exclusions –

  • * Loss or damage due to war perils, riots or strike, nuclear perils, and natural calamities
  • * Coverage for jewelry, stones, precious gems, business books cash, etc.
  • * Loss or damage due to shop lifting, involving your or your family members or employees
  • * For items stolen from a safe using a duplicate key, unless it is obtained by threat or violence

 

Importance of burglary insurance –

Most of us store valuable goods and documents in our house or office. But, what if someone steals these valuable items? In such a scenario, you would have to bear a huge financial loss. Thus, buy a burglary insurance as it’s the easiest and convenient way to safeguard the security of your property. In fact, it assures to provide you with a financial support if you have to face bad times.

We live in such times where we can’t leave our house unattended more than a week. And when we do, we are always tensed about its security. Thus, burglary insurance proves to be very helpful.

 

Marine and cargo insurance:

Marine and cargo insurance is a type of insurance policy offered for import/export merchants, buyers, sellers, and contractors.

What is the coverage offered by marine and cargo insurance?

Here’s a list of inclusions –

  • * Fire or explosion, sinking, stranding, etc.
  • * Overturning or derailment of land conveyance
  • * Expenses like survey fees, reconditioning costs, and sue charges
  • * Discharge of cargo at a port of distress
  • * Loss or damage caused due to general average sacrifice salvage charges
  • * Earthquake or lightning
  • * Vessel or craft being stranded grounded sunk or capsized
  • * Jettison or washing overboard

 

What’s not covered under marine & cargo insurance?

A list of exclusions –

  • * Loss caused due to the delay of the cargo
  • * Loss or damage due to insolvency of the ship owner or any financial default
  • * Loss or damage due to willful misconduct of the insured
  • * War and SRCC (strikes, riots, and civil commotion)
  • * Wear and tear of the goods insured

 

All-risk insurance:

All-risk insurance is a type of property insurance generally offered of jewelry, portable equipment, and other similar assets. The design of this policy varies from company to company.

What’s not covered under all-risk insurance?

Listed below are a few things that are not covered under all-risk insurance policy –

  • * Loss or damage due to mechanical or electrical breakdown
  • * Depreciation or wear and tear
  • * Loss or damage due to war and nuclear perils
  • * Scratching or denting
  • * Loss or damage that happens during cleaning, dyeing, restoring or repairing

 

When it comes to property, no doubt, one would want the best of everything. So, choose the best property insurance policy and safeguard your property from natural and man-made disasters. Besides, there are several property insurance policies available in the market that best suits your requirement. So, choose one as per your needs.

 

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