Take Property Insurance to Insure Your Happiness

Property Insurance

Property is one of the most popular investments, and it ought to be protected. Property insurance may appear to be a duplicate sort of coverage, but it is not. What if your home burns down, is damaged by an earthquake, or is the victim of another natural or man-made disaster? The prospect of incurring significant costs if the house sustains catastrophic damage is enough to give you goose bumps. As a result, the best solution is to purchase home insurance.

The following are some of the highlights of home insurance coverage:

  • Protection for the structure of the house
  • Safeguarding valuables in the home
  • Theft/larceny coverage is available as an add-on.

Property insurance has the following features:

In general, there are two factors that can cause structural and content losses.

a. Explosions of fire and other dangers: In such a case, protection is offered against the following:

  • Fire, explosions, aircraft damage, and missile-related damage
  • Riots and terrorism-related damage
  • Tornadoes, cyclones, storms, and landslides are all examples of natural disasters.
  • Earthquakes and volcanic eruptions are both natural disasters.
  • Damage was caused by a vehicle or an animal.

b. Theft and Larceny: This covers the loss of personal property within the home:

  • Precious items are kept in a safe on the premises.
  • Insurance is sought for other contents such as furniture.

Factors determining the sum insured in property insurance:

Reinstatement Value (for structure): When purchasing property insurance, the sum covered is calculated based on the cost of rebuilding the residence in the case of a disaster such as a flood, fire, or storm.

The cost of constructing a structure, taking into consideration built-up area, determines the reconstruction cost. It’s worth noting that the cost of land isn’t addressed, but the following two considerations are:

  • Your house’s built-up area
  • The cost of construction in your area

The reinstatement value is calculated by multiplying the built-up area of your home by the cost of building per square foot.

Market Value (for contents): The market value of the goods or contents is used to determine their worth. The market value is determined at the time of insurance, and if a loss happens, the market value is paid less the depreciation amount.

General Exclusions of property insurance:

  • Self-inflicted damage to property
  • Warfare has caused damage.
  • Losses incurred if your home is left unoccupied for the time period indicated in your insurance policy without notifying your insurer.

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