The Importance of Property Insurance cannot be overemphasized but it is equally significant to understand its meaning, the various types of property insurance covers, It cost involved and such answer questions like – is property insurance mandatory for a home loan? This article aims at discussing all these and more.
Buying and investing in property is something that we do with the utmost care, don’t we? But, we often miss out an important step – Property & Home Insurance. Why do you need it? How do you get it? If these are all the questions that are wading through your mind, we are here to answer them for you!
The Basics of Property Insurance
So, what is property insurance? Well, think about it – when you purchase a car, you purchase the car insurance along with it as well. Why? Everything is fine, so why do you need insurance? It is in case of any future damage that might happen to the car. That is why to protect our finances and repair the damages, we get insurance; so that we know that we are covered. It is the same when it comes to property insurance. All you have to do is go through the Property Insurance PDF online and then purchase insurance for your property. This will help you to protect your property in the future and if damaged you will have the insurance to cover it. So it is quite a good long term investment plan.
Everyone needs to have a fair understanding of the Property Insurance Meaning so that if they own a property or are planning to buy one, they get can get it insured. Leaving your property without an insurance cover might be at a bigger risk than you can imagine.
When it comes to property insurance, it is also crucial for you to remember that Benefits of Property Insurance is there – the most important one being – your peace of mind. Your pocket will be protected in case of any damage. Thus it is crucial that you understand the importance of having property insurance.
The importance of having property insurance
Now coming to a frequently asked question – why do you need property insurance?
Well, to begin with, you never know what kind of damage might befall your house and what kind of cost you might have to bear for it. From fire to burglary, there might be various dangers that you need to be wary of when it comes to your home. Which is why you need to get insurance and the best part is that you can now get Property Insurance Online as well. When you purchase an expensive piece of property, it is important to remember that the damage cost that you incur will also be far more and hence it is best to get it insured as soon as possible, to protect yourself from financial losses.
It is important to remember here that there are different types of property insurances. And you can pick and choose the one that you find the most suitable.
So, what are the different types of property insurances that you can purchase? Let’s take a look:
- Fire insurance: This will cover your property in case there is any damage related to fire. The factors that will be covered under this insurance are – fire, damage from aircraft, natural disaster, lightning, etc.
- Burglary insurance: This will cover you in case there is a break-in, burglary of items at home etc. This is one of the most important Types of Property Insurance that one should get.
- All-risk insurance: This one will cover your property on various accounts of damage and is one that you can also consider getting.
- Commercial Property Insurance: If you have a commercial property that you have bought, then you should get one of these which will cover various damages including theft, fire, vandalism and various other maintenance issues as well.
It is important to remember here that your Property Insurance Cost will vary depending on the type of property insurance that you decide to purchase. At the time of the purchase, you will have to submit relevant documents and you will have to have your documents ready when you want to claim your insurance as well.
The Property Insurance to Purchase
Another very fundamental question that a lot of people struggle with is which property insurance they should get for themselves? Based on the guidelines laid down by the Insurance Regulatory and Development Authority or IRDA, you will have to decide which insurance policy to get for your property. For that, you need to look up the document ‘IRDA – What Property Insurance to Buy’. It is best that you first get a risk assessment of your property done. That way you will be aware of what might be the likely insurance damages that you have to face in the future. That is one way to go about it.
The other main aspect of insurance is that you need to ensure payment of premium to keep your insurance active. There is no doubt when it comes to the question as to How far property insurance is helpful? The answer is – it is important because it is needed. So, see what amount of premium money you are comfortable paying and then you can choose your type and insurance policy accordingly.
An important point to note
A lot of people ask, is property insurance mandatory for a home loan? Well, based on IRDA guidelines it is not and hence when you do seek a home loan; it doesn’t mean that you have to have property insurance. For safety purposes, you can always get one for yourself and have your property insured.
So, property insurance is a question of choice. It is an investment, but an investment that will surely protect you. Just make sure that you have the claim clauses clear before you opt for one. Remember, an insured home is a safe investment for your pocket!
FAQ
- What is Property Insurance?
It is an insurance cover which protects you against financial loss on account of damage to property.
- Why is it important to get my property insured?
To cover loss from your property being destroyed you need to have it covered under property insurance.
- Which kinds of property insurance should I consider?
Depending on requirement & risk consider the following types:
- Fire insurance
- Burglary insurance
- Commercial Property Insurance
- All-risk insurance
- Is property insurance mandatory for a home loan?
Based on IRDA guidelines it is not when you do not seek a home loan. However, some banks and financial institutions would ask for it to cover their risk.
Also read : Home Loan Transfer Process: Know all the details
