Why is Property Insurance Important?

From the smallest to the largest asset – insurance has become a necessity. We ensure our phones, our holidays and most other gadgets come with insurance so how can we not insure our immovable properties which are one of the most valuable assets that one can invest in. The importance of property insurance cannot be stressed enough, as it is extremely important to make sure that your property is safe and secure against a lot of mishaps. It is a safety measure that one must take to ensure that they have something to rely upon in times of distress that may occur due to damage to property.

Here is everything you need to know about the importance of property insurance.

What is property insurance?
Property insurance is insurance that provides coverage for a building structure or structures and its contents against natural or manmade calamities. The coverage provided by the property insurance is not fixed and often varies depending on the type of insurance taken and the needs of the consumer.

How can one get property insurance?
Property insurance comes as a written contract called a policy. It is a legal document that binds the policyholder and the insurance company. The policyholder should pay a certain amount called the premium to the insurance company in exchange for which the company assures to pay for certain damages that may occur to the building. The kinds of damages and losses covered will be elaborately discussed in the contract, hence it is extremely important for the policyholder to thoroughly go through the document before zeroing in on a certain company. The market is full of different insurance companies offering competitive coverage and a wise investment is one that is made after a thorough comparative analysis of the various offerings by different agencies.

What are the types of insurance and benefits of getting your property insured?
Property insurance is like a safety net that one can fall back upon in times of damage that may occur to their property due to varied reasons. Insurance usually provides cover under two main categories- hazards and liability.

Hazard insurance provides a policyholder against damages that may occur due to fire, vandalism, theft and similar mishaps. It could provide a cash value of the damages or their replacement value. The replacement value provides enough payment to replace what is lost or damaged. The cash value pays the policyholder the worth of the property. It takes into account the actual value of the item and its depreciation till the time of damage and pays accordingly.

Liability insurance provides cover against the accidents that may happen on the property. Medical expenses that one might have to bear due to damage to life on the property; for example, if someone falls or a similar mishap occurs, liability insurance will take care of it.

Factors to keep in mind while choosing a property insurance policy.
There are many different companies offering many different options. It is imperative to study what they have to offer and decide accordingly. There are different factors that one will have to bear in mind, one being the amount of insurance coverage that you are getting from a certain policy on your property. The second factor is the amount of yearly premium that the insurance demands you to pay. The third factor that you have to understand is the time taken and the ease with which you can claim the homeowner insurance and settle the procedure. Lastly and most importantly, you have to go through the list of events that the insurance will cover. The different incidents, natural disasters, etc that will be covered by the policy have to be in sync with what the topography of your site needs. Like some regions may be more prone to floods, some others to earthquakes – ensure that your insurance provides you a backup for the same.

Pick a policy that ensures maximum coverage and ensures against more mishaps and misadventures while the premium is also affordable for you.