Financial freedom is not just having enough money saved for future but also having security for your assets. If you approach life realistically, you will realise that insurance plans are just as crucial as saving money for financial freedom.
Insurance guarantees that you are financially secure to deal with any problems that may arise in your life.
Among all types of insurance plans available today, one of the least-known plans is property insurance. Here's all you need to know about property insurance:
What is a property insurance?
The insurance that guards tangible assets against loss from theft, fire, and other hazards is known as property insurance. An all-risk coverage insurance may be used to provide protection from all potential threats. Alternatively, a named-risk coverage insurance may offer protection just from the risks listed in the policy agreement.
If you own either residential or commercial property, a property insurance coverage is very necessary for you. This is so because it's normally fairly expensive to restore property damage.
Types of property insurance
Homeowner’s property insurance
In India, this is the most typical and popular kind of property insurance. Homeowner's insurance, as its name implies, shields owners of residential properties from suffering financial damages in the event of any unfavourable incidence.
Your personal goods that are stored within the property are also covered by homeowner's insurance. Furthermore, reputable insurance providers will cover any damages you could sustain as a result of water tanks and pipelines breaking or spilling.
Commercial property insurance
Another type of property insurance that is extremely frequently obtained in India is commercial property insurance. Commercial properties including offices, warehouses, retail stores, eateries, and factories are covered by this category of property insurance. It is wise for company owners to obtain commercial property insurance to protect their working capital in the event that their commercial property and its contents are damaged.
Do not forget that commercial general liability insurance differs from commercial property insurance. Commercial general liability insurance shields you against third-party obligations brought on by your business, unlike commercial property insurance, which only insures your property.
Renter's property insurance
A renter's insurance policy offers financial protection to the policyholder in the event of their possessions being harmed by man-made or natural disasters while they are housed in a leased space. The renter's insurance covers valuables like jewellery, pricey gadgets, furniture, and other such possessions.
Many policies also protect you against any potential legal obligations you might have to the property owner. The usage of a renter's insurance policy for business is also possible. When storing their company's goods in a third-party storage facility, business owners often look to purchase renter's insurance.
Public liability property insurance
Public liability property insurance is a form of third-party insurance coverage. It covers the policyholder's financial obligations when third parties suffer losses or property damage. For protection against financial costs incurred as a result of customer losses or damages on their property, commercial property owners of bakeries, cafes, restaurants, and other businesses might choose to get this insurance coverage. According to the Environment Protection Act of 1986, it is a requirement for company owners to carry a public liability property insurance coverage.
One of the most frequent accidents that can seriously harm a property's contents and surroundings is an accidental fire. A unique kind of property insurance called fire insurance offers protection against unintentional fires and related risks including explosion, implosion, lightning, impact damage, etc.
In case of a residential property, choosing fire insurance can protect the structure, furnishings, fixtures, and other possessions. However, it can also defend personal items and rented or commercial property against harm from an unexpected fire. Additionally, it covers losses brought on by forest fires, missile tests, auto accidents, etc.