Protect Your Property Against Unexpected Risks
Buying a property is one of the most important financial decisions many people make. Whether it is a house, apartment, villa, commercial building or other property, protecting that investment is an important part of responsible property ownership.
Property insurance can provide financial protection against certain unexpected events that may damage the insured property or its contents, depending on the policy and coverage selected.
At Bhoomi Planet, we believe property owners should understand the importance of insurance and make informed decisions about protecting their assets.
What Is Property Insurance?
Property insurance is a type of insurance designed to provide financial protection against specified risks affecting a property and, depending on the policy, its contents.
The exact protection available depends on:
The type of policy
Property and contents insured
Sum insured
Covered risks
Policy terms and conditions
Exclusions
Deductibles
Additional covers selected
Therefore, it is important to understand the policy before purchasing it.
Why Consider Property Insurance?
A property can be affected by unexpected events such as fire, certain natural calamities, accidental damage or other insured risks.
Repairing or rebuilding a property after a major incident can involve significant expenses.
Insurance can help transfer certain financial risks from the property owner to the insurer, subject to the terms and conditions of the policy.
Property insurance may help you:
Protect your financial investment
Manage unexpected repair or replacement expenses
Protect eligible household contents
Obtain coverage against specified natural or accidental events
Reduce the financial impact of certain unforeseen incidents
What Can Property Insurance Cover?
Coverage varies significantly between insurance products and policies. Depending on the policy selected, protection may include certain risks such as:
Fire & Related Risks
Some property insurance policies provide protection against loss or damage caused by fire and specified associated risks.
Natural Events
Depending on the policy, certain natural events such as storms, floods, cyclones or other specified events may be covered.
However, coverage and exclusions must always be checked carefully.
Other Specified Events
Some policies may provide protection against risks such as lightning, certain explosions or other insured events.
Building Structure
A policy may cover the insured building or structure against specified risks, subject to the policy terms.
Household Contents
Depending on the policy, furniture, appliances, electronics and other household contents may also be insured.
Valuables
Jewellery and other valuables may require specific declaration or additional coverage and may be subject to special conditions or limits.
Home Insurance vs Property Insurance
People often use the terms home insurance and property insurance interchangeably, but insurance products can differ considerably.
A policy may protect:
Building + Contents
or
Building Only
or
Contents Only
Some policies may also offer additional protections.
Therefore, do not select a policy solely based on its name or premium. Understand exactly what is insured and what is not insured.
What May Not Be Covered?
Insurance policies normally contain exclusions and conditions.
Depending on the policy, certain situations may not be covered, or may be covered only under specific conditions.
Examples can include:
Normal wear and tear
Poor maintenance
Certain pre-existing damage
Unauthorised alterations
Certain types of consequential loss
Risks specifically excluded by the policy
Losses exceeding applicable policy limits
The actual exclusions vary between policies.
Always read the policy wording carefully before purchasing insurance.
How Much Insurance Do You Need?
Choosing the appropriate sum insured is an important decision.
Underinsuring a property can leave the owner with a significant financial burden if a major loss occurs.
The appropriate amount may depend on factors such as:
Type and size of property
Reconstruction cost
Location
Construction materials
Contents and valuables
Applicable policy conditions
Additional coverage requirements
The market value of a property and its reconstruction cost are not necessarily the same thing. Property owners should understand the basis on which the insurer determines the sum insured.
Property Insurance for Homeowners
Homeowners may consider insurance for both the building and household contents, depending on their requirements.
For example, a homeowner may want to consider protection for:
Building structure
Electrical installations
Furniture
Appliances
Electronics
Household belongings
Other eligible contents
The availability and extent of each cover depends on the selected policy.
Property Insurance for Apartment Owners
Apartment owners should understand the difference between insurance for the individual apartment and insurance arranged for the overall building or common areas.
In some residential communities, the association or management may arrange insurance for certain common structures or areas.
Apartment owners should therefore find out:
What the association's insurance covers
What their individual policy covers
Whether the contents inside the apartment are insured
Whether there are gaps between the two policies
Having appropriate individual coverage may be important even when the building has an insurance policy.
Property Insurance for Landlords
Landlords may have different insurance requirements from owner-occupiers.
Depending on the property and policy, landlords may consider protection relating to:
Building structure
Fixtures and fittings
Certain insured risks
Other applicable property-related exposures
Landlords should also understand whether the policy permits the property to be rented out and whether there are specific conditions relating to tenants.
Insurance for Commercial Properties
Commercial properties can have different risks depending on their use.
An office, shop, warehouse, restaurant, hotel or industrial property may require different types of insurance protection.
Business owners should consider the nature of their operations, the property, equipment, inventory and other relevant risks when discussing insurance requirements with a qualified insurance professional.
What Should You Check Before Buying Property Insurance?
Before purchasing a policy, carefully consider:
1. What exactly is insured?
Check whether the policy covers the building, contents or both.
2. What risks are covered?
Understand the specific events for which you are protected.
3. What are the exclusions?
Exclusions can be just as important as the list of covered risks.
4. What is the sum insured?
Make sure the amount is appropriate for the property and coverage selected.
5. Are there deductibles?
Understand how much you may have to bear yourself when making a claim.
6. Are there special conditions?
Certain properties, valuables or situations may have additional conditions or limits.
7. What is the claim procedure?
Understand how and when a claim must be reported and what documents may be required.
Keep Your Property Documents Safely
When purchasing insurance, maintaining proper documentation can be useful.
Keep copies of relevant documents such as:
Property ownership documents
Purchase documents
Property photographs
Invoices for valuable items
Renovation records
Insurance policy documents
Previous claim records
Other relevant supporting documents
It is also useful to maintain an inventory of valuable household contents where appropriate.
Don't Choose Insurance Only Based on Premium
A lower premium does not necessarily mean better protection.
Two policies with different premiums may provide different:
Coverage
Limits
Deductibles
Exclusions
Add-on benefits
Claim conditions
Therefore, compare the coverage and terms, not just the price.
Property Insurance as Part of Responsible Property Ownership
Property ownership involves several responsibilities.
Along with maintaining the property, paying applicable taxes and keeping documentation in order, considering appropriate insurance can help manage certain financial risks.
Protecting your property today can help reduce the financial impact of unexpected events tomorrow.
Bhoomi Planet – Helping You Make Better Property Decisions
At Bhoomi Planet, our objective is to provide useful information to property buyers, sellers, owners, landlords and tenants.
From buying and selling property to legal documentation, home loans, interiors and property protection, understanding the different aspects of property ownership can help you make more informed decisions.
Thinking About Protecting Your Property?
Understand your risks, compare suitable insurance options and consult a licensed insurance professional before selecting a policy.
Bhoomi Planet
World of Real Estate
Disclaimer
The information provided on this page is for general awareness and educational purposes only. It does not constitute insurance advice, financial advice or a recommendation to purchase any particular insurance product.
Insurance coverage, exclusions, conditions, premiums, deductibles and claim procedures vary between insurers and policies. Please read the applicable policy documents carefully and consult the insurer or a licensed insurance professional before purchasing insurance or making decisions regarding your coverage.
Bhoomi Planet does not guarantee the availability, suitability, coverage or claim settlement of any particular insurance policy or insurer.
