Property Insurance

Property Insurance as the name suggests is the Insurance provided against any risk to property through fire, theft or other damages. Our property is a valuable asset and needs to be guarded against any protection. By getting property Insurance we ensure that it is protected against any uncertain risk and damage. Property Insurance can be of many types but is insured in two ways:

Open Dangers

This type of Home Insurance covers all kind of losses, unless exceptionally mentioned in the clause. In other words, open peril is the Insurance category, where by any property is insured for all losses except few which has to be mentioned namely in the contract. General losses which are not covered under this category can be floods, nuclear accidents, earthquakes, Terrorist act etc. However any Insurance company may choose to provide coverage against any of these categories. In such case only losses which are not covered, are mentioned in the specific exclusion clause.

Named Perils

As the name suggests in Name peril the actual causes of loss are mentioned in the Insurance contract. Only these losses, enlisted hereby under coverage clause are covered in this category. Most common losses covered in named peril are property damaged in the event of Fire, explosion, theft, lightening etc.

Types of Property Insurance

* Home Owner Insurance: In this the homeowner is protected against the damage done to his home. The amount compensated would depend on the cost of replacing the home in event of complete damage, and is usually guestimated when getting a home insurance quote. The most commonly bought home owner policy is known as HO - 3 policies. It covers the home, all its content, structure and the accident and injuries occurred on the premises. A standard home owner policy may not cover both natural and artificial disasters.

* Building and Content Insurance: This covers the content of the house and damage done to the structure. You should at least have the coverage of 80% of the total replacement amount due at the time of destruction or damage.

* Earthquake Insurance: This is another form of property Insurance which assures the replacement cost of the property in case of earthquake damage. Most normal homeowner policies do not cover earthquake loss. Earthquake Insurance features high deductible, thus only making it worth in case of complete property damage. Cost of Earthquake Insurance directly varies according to the location and build of the property. A house made of wood (more withstanding earthquake) is bound to have low premiums than house made of cement and concrete.

* Flood Insurance: As the name suggests Flood Insurance protects the property against flood. Topographical maps are the most essential tool for the insurer to assess the risk factor for the insured property.

* Fire Insurance: In case of your property being damaged in fire the insurance company pays the replacement cost of household content tabulated on percentage basis as part of your house. The high value items are also covered separately.

* Boiler Insurance: In this property Insurance, the repair cost or sometimes the replacement cost of the house boiler is covered. It may also cover the central heating system and electric system.

Above mentioned were some common forms of property Insurance. Property Insurance is becoming increasingly popular. It not only provides us coverage from sudden damage, also helps us in discovering the depreciating value of our property.