All you want to know about..... PROPERTY INSURANCE

3.  Types of property insurance:-

A package for every owner

While property insurance may seem homogenous, there are actually packages to suit almost anyone who has four walls and a roof to protect


Other than your car, or your life, the one other important investment you would need to insure is probably your house and its contents to protect them from varying risks ranging from lightning to larceny.  If you are a businessman, your business premises may even be more important materially - and you would need to insure it from events such as flood, fire or burglary.  To take it a step further, you could even insure your machinery - which is also classified as property - against loss of profit in case of breakdowns.

Before you recoil at the thought of spending a large bundle of hard-earned cash on what may seem intangible, calm yourself with the knowledge that the total cost for adequate property insurance will not put you in the poorhouse.  Even though paying premiums is no fun - especially for the businessman constantly keeping tabs on the bottomline - it is a prudent move.  Besides, knowing that you are covered in case of any mishap is a comfort.

There are many types of property insurance packages to choose from, depending on your needs.

Houseowners Insurance

For homeowners, there is the straightforward homeowners' insurance package.  Such an insurance package is already a mandatory requirement by banks anyway if you have applied for a mortgage.  This is to ensure they are protected in case something happens to you or your property.  But because property insurance is not exactly as popular as say, life insurance, or as visible, a large number of proud homeowners do not think of the fact that they may be losing a lot of money if something happened to their home - after the renovations.  In fact, industry experts suggest that whenever you make a significant home improvement - modernise or extent the kitchen, add a bathroom, build an extra bedroom - you should update your homeowner's policy to reflect the added value.  To make life even easier (and more risk-proof) it may be a smart idea to have a chat with your insurer before you start any renovations.  That way, if there is damage while work is in progress, you are more likely to be fully covered.

Householders Insurance

However, more relevant to the dweller would be the coverage of his or her home contents - where the insurance company will insure the contents in the house.  If you operate a home business, do not assume that your equipment or liability for clients and others who visit you will be covered under your homeowner's policy.  In fact, it is highly likely that you may have to protect your home-based business through a separate policy.  In the age of connectivity, more people are deciding to run their own businesses or consultancies or merely work from home - which means you spend more time, probably have more valuable equipment such as high-end computers and other technological gadgets and maybe even entertain potential clients at home.  You, your equipment - and even your potential clients - need some form of protection.

Fire Insurance

Another fairly important insurance package - especially for corporations - would be the fire and lightning insurance package.  This very basic package is designed to cover private dwellings, offices or commercial interests and their contents against fire and lightning.

Burglary Insurance

It is advisable to get some additional coverage against loss or damage due to events such as theft.  Unfortunately, items such as money, personal effects elsewhere than on the premises, motor vehicles, living creatures and works of art are excluded from the scope of coverage.  However, insurance companies, being nothing but thorough, also provide coverage for these items, which can be insured under separate policies subject to individual consideration.

Boiler and Machinery Insurance

For factories, there is another insurance package that would take care of such potential problems.  It is generally known as boiler and machinery insurance.  This provides coverage against the accidental breakdown of boilers, machinery or equipment, including computer systems and telephones or communication systems.  Coverage usually includes reimbursement for property damage, expediting expenses, and business interruption losses.

Insurance companies even provide cover against business interruption, a package that would most likely welcomed by the entrepreneur.  The business interruption package generally covers the loss of earnings as a result of damage or loss of business property.  Reimbursement for salaries, rents, and other expenses plus net profits that would have been earned during the period of interruption can be included - depending on the premium paid, of course.

^ Article extracted from NST Property Times - Signed&Safe


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