PROPERTY INSURANCE

INTRODUCTION

 Most often, we make investments of all our life savings in acquiring properties. These properties may be buildings, cars, office equipment, appliances, machineries, and so on. it is the need to safeguard these properties that has given rise to property insurance.

However, most times, we see all these properties go down the drain as a result of accidental damages as a result of natural calamities such as earthquake, cyclone, flood etc. moreover, these calamities can as well happen as a result of man-made actions such as acts of terrorism, riots, theft, etc. and most times, we secure loans to acquire these properties. Just imagine the level of loss in the event that these properties are damaged or lost in any of the circumstances above.

 It serves to provide indemnity or reimbursement from your insurers in the events of such uncertain occurrences.

WHAT DOES PROPERTY INSURANCE MEAN?

Property insurance means the act or process of safeguarding or subscribing for indemnity of your properties such as buildings, stocks, machineries etc against risks of theft, burglary, fire, and other risks. It therefore means that the lists of items that can get insurance under it are enormous. And its type of cover/plan to choose largely depends on the nature of property you intend to insure.

Similarly, it does not only protect against personal damage, but it equally extents to public liability, including third party property damage.

It equally affords you protection against sundry risks to your property like theft, fire and allied risks. it encapsulates other forms of insurance such as earthquake insurance, home insurance, flood insurance, and even fire insurance.

 FORMS OF PROPERTY INSURANCE

Property insurance comes in two different basic forms. They include the ALL- RISKS POLICIES which undertakes to cover all encompassing range of risks except those distinctly excluded in the insurance policy. The second form is the SPECIFIC- RISK POLICIES which covers only the specific risks spelt out in the insurance policy.

TYPES OF PROPERTY INSURANCE

There are different types of this class of insurance which includes but not limited to.

1. Natural disaster insurance
2. Property insurance against flood
3. Commercial property insurance
4. Home owner’s insurance

NATURAL DISASTER PROPERTY INSURANCE

This type serves to protect your property against risks connected with natural disasters such as hurricane, earthquakes, tornadoes, volcanoes. And some other natural calamities that cause serious damage to your properties.

PROPERTY INSURANCE AGAINST FLOOD

This is a type of insurance policy that covers damages that happens as a result of flooding due to heavy rain falls, coastal storms, or blockage of s drainage systems, etc. It is used to protect your residential as well as commercial properties.

It is worthy of note that this cover against flood only works to offer offers protection against damages  from external factors like rain, snow, storms etc. And in which case, the home owner claims money enough to repair such damage or put back the structure subject to the insurance Plan limit.

COMMERCIAL PROPERTY INSURANCE

This type serves the benefit of business owners and property developers. Business owners need not be reminded of the need to insure their commercial properties in the event that unexpected calamity happens.

Secondly, there is also a possibility of being subject of legal action by third parties in the event of damage to their properties as a result to the damage of your business. Therefore, it is of moment that you consider purchasing a business insurance that includes commercial property insurance.

HOME OWNER’S PROPERTY INSURANCE

This is a type that exists for the purpose of protecting your home and properties against damage or loss. It also offers protection for liabilities against home accidents or accidents on the property. However, subject to the agreement with your insurer, there are always liability limitations which determine the extent or the amount of coverage undertaken by your insurer to indemnify. On the whole, home owner’s insurance covers four major incidents which includes; exterior damages, damages to interior, damage /loss to personal assets and injuries which occurs while on the property

BENEFITS OF PROPERTY INSURANCE

1. it offers you protection against all risks to property. For example fire, theft, and all other natural disasters.
2. It provides comprehensive coverage to both your building and its contents.
3. Its insurance premium is lower than other insurance policies
4. Buying this policy affords you peace of mind knowing you have a backup in case of eventualities.
5. There equally an advantage of getting a timely payment of claims which will afford you the opportunity to rebuild your damages quickly

DAMAGES NOT COVERED BY THIS POLICY

1. Intentional destruction of your property
2. Damages as a result of normal wear and tear
3. Cash, antics and collectibles
4. Properties lost to war
5. Properties unoccupied for a reasonable certain period of time.

DAMAGES COVERED DAMAGES PROPERTY INSURANCE POLICY

1. Damage as a result of flood/water
2. Mischief and vandalism
3. Explosion
4. Theft
5. Damage from vehicles or air crafts
6. Damages as a result of fires
7. Lightening strikes damages etc.

CONCLUSION

Property Insurance cover is an important aspect of everyone’s portfolio. This is because, natural and man -made disaster like fires, earthquakes, theft, volcanoes, riots, etc. can cause catastrophic damages to your hard earned properties. Therefore, its policy represents an important insurance Plan to purchase for your properties.