Every house owner should opt for a home insurance policy to protect their property against thefts, fire, natural and manmade disasters, etc.
A house is among the valuable possessions of every individual. Several homeowners nowadays opt for installation of advanced equipment to protect their property from unexpected perils or damages.
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However, at times owners miss an essential step in this regard. A property or home insurance policy is crucial for protecting one’s finances in case the house faces damages due to unforeseen incidents. There are various types of property insurance in the market that one can choose as per the requirements.
What are the 5 different property insurance types in India?
Whether one has recently invested in a commercial property or just bought a new home, property owners can opt for a suitable insurance policy as per the property type.
Among several types of property insurance policies in India, the following five are much-needed for owners:
1. Renter’s property insurance
Owners planning to rent their building or house can opt for a renter’s property insurance. It covers the losses and damages caused to the tenant’s property and belongings in the insured rented property. The belongings include electronic appliances, furniture, and any expensive installation.
Many often get this insurance for commercial cases as well.
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2. Commercial property insurance
Commercial properties such as shops, restaurants, offices, warehouses, factories, etc., can be insured with commercial property insurance. This insurance safeguards commercial properties and their belongings from unexpected damages and losses.
For example, natural or manmade calamities can often cause damage to the business properties leading to financial losses. Thus, insuring one’s business organisation can financially protect the owner from such disasters.
3. Home insurance
Every house owner should opt for a home insurance policy to protect their property against thefts, fire, natural and manmade disasters, etc. Establishments, such as individual buildings, apartments, villas, houses, etc., can be insured with this policy. It will cover the policyholder financially to bear the expenses incurred due to property damages. The coverage includes damages to fitting in ceilings, kitchen, washrooms, garages or sheds, etc. Moreover, it covers the valuables stolen or damaged from the insured property.
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4. Fire insurance for property
Fire property insurance protects establishments and properties from accidental fires and associated risks. Fire breakouts, such as explosions, lightning, implosion, etc., can cause severe damage to the property and its content.
Thus, opting for fire property insurance can safeguard the building, furniture, fixture, and other belongings in case of a residential property. However, it can also protect commercial or rented property and belongings against damages caused due to sudden fire. Moreover, it covers damages caused due to forest fires, missile testing operations, vehicle collisions, etc.
5. Public liability insurance
Public liability property insurance is a type of third-party insurance policy. It covers the financial liabilities of the policyholder during third-party losses or damages within their property. Commercial property owners of restaurants, café, stationery shops, bakeries, etc., can opt for this insurance policy to stay protected against the financial expenses incurred due to the losses or damages of their clients within their premises.
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However, an individual house or apartment owner can also purchase this policy to safeguard themselves from the losses caused to their guests or visitors while visiting their property. This insurance provides coverage against bodily injuries, property damages, investigations, settlements, etc.
Conclusion
Every property insurance policy comes with some essential coverage benefits. However, a property owner needs to select the insurance plans according to their property type. There are also exclusions for each type of property.
This guide can help understand property owners about five basic property insurance policies and the aspects they cover.
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