Have You Protected Your Property From Uncertain Events?

Have You Protected  Your Property From  Uncertain Events?

Every individual possesses some type of properties which can either be personal property or business property. All properties face some or the other kind of risks from fire, theft, flood, breakdown, etc. which can put the individual into a financial crisis. Sometimes it can be a small amount but at times it can be a huge sum which can cause financial as well as mental instability. Can you protect your property from such uncertain eventualities? The answer to this question is “Yes, you can protect your property by insuring it from risks which it may face.” In the same way that people own life insurance and health insurance to protect themselves and their families from unfortunate events, they can also insure their properties and protect them from unfortunate happenings.

Insurance of property means insurance of building, machinery, inventory (stock), house, furniture, etc. against fire and allied perils (floods, storms, lightening, cyclone), burglary risks, etc. Property insurance provides protection for property and interests of the insured and his family members and business. Apart from this, these policies can cover the goods in transit through railway, road, sea, airways, etc. Further, there are some specialised policies such as aviation insurance policy for insurance of planes and helicopters .

Types of Property Insurance

Umbrella or Package Policies

There are umbrella or package policies which provide a combination of covers under a single document. There are different types of umbrella covers available such as householders policy (which protects your house and contents of your house), shopkeepers policy (which protects the structure of shop and contents and other incidental business activities), office package policy (protects office premises and contents), etc. These types of policies also include certain liability covers such as injuries, damage to properties and certain lawsuits.

Fire Insurance

The most popular property insurance policy is the fire insurance policy. This policy protects the property against any mishap due to fire and allied perils. Fire insurance, apart from covering fire, also covers various other perils like lightening, storm, cyclone, explosion, riot, strike, bush fire, leakage, landslide, etc. This policy covers different types of properties like dwellings, offices, hospitals, hotels, places of worship, etc. and their contents like machinery, goods (all types of goods like semi-finished goods, finished goods, packing material, etc.), inventory (stocks, raw material), equipment, accessories, etc

Burglary Insurance

This type of policy covers the loss or damage due to burglary to the insured property and valuable items. This policy may be offered to a business organisation or house. Burglary means when someone enters into your property in an unlawful and forceful manner with the intention of theft. The policy covers property and contents such as premises including stock of goods, cash, furniture, valuables like jewellery any damage suffered by the insured. The design of the policy may vary from company to company

Marine Cargo Insurance

Marine cargo insurance covers the property in transit against perils incidental to navigation through sea, air, rail, road, registered post parcel, courier or a combination of these. These cargoes can face various types of risks such as accidents, damage due to rash driving, jerks, etc. This type of insurance can be purchased by buyers, sellers, importers, exporters, contractors and others.

The other property insurances available are engineering insurance policies like electronic equipment insurance, machinery breakdown insurance, etc. Therefore, property insurance is a vast set of general insurance and the type of cover that you need depends upon the type of property you want to cover.

What are the types of property insurance covers?
There are three types of property insurance covers

Factors that affect the insurance premium rates:
Geographical Location: If the property insured is in a flood prone or earthquake prone location then the premiums charged are higher as chances of the property getting damaged are higher.
Size of Premise: If an individual owns a big factory or a huge house then the premium rate will increase equivalent to the size of the premise. If an individual has taken safety measures in order to protect the property then the premium amount will become lower, as for example, anti-theft device installations.
Age of Property: If the age of the property is quite old then the chances of it getting damaged are higher and so the premium will be higher.

Selecting Property Insurance
First of all you should consider the health of the prospective company from which you are thinking of buying the property insurance. It should have a strong pedigree and you also judge from the feedback about the company posted on any website. Secondly, go for a policy that provides coverage for all the risks that your property might be prone to such as cyclone, flood or any other natural disastrous phenomena. Further, check the turnaround time for settlement of claims. Quick settlement of claims is an indication of a good company that has your interests as priority, making it a worthwhile choice. Now compare with different insurance providers their premium before buying insurance.

Case Study
HM Clothing is a renowned store in the field of garments. The store sells all types of trendy clothes. Last year the store faced a tough year as a fire took place due to a short circuit in the store. The fire was controlled and none of the staff was injured but contents in the store were totally damaged. Fortunately, HM Clothing had property insurance and did not face any financial loss. The store had been covered under umbrella insurance and so the losses were compensated by the insurance company. If HM Clothing Store had not opted for any insurance, the owner would have had to deal with a huge financial loss.

Conclusion
In order to protect yourself from any untoward incidence impacting your financial position, while making your financial plan you should assess all the risks and try protect yourself by insuring each and every aspect that may pose financial loss. However, before purchasing insurance you should thoroughly go through the policy terms and conditions, exclusions, inclusions and assess your needs and then continue the further procedures.

 

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