Property Insurance

What is Property Insurance?

Property insurance is a legal contract between you and the insurer that protects your property against risks such as fire, theft, natural disasters, riots, and accidental damage. A property policy insurance can cover the building structure, the contents inside, or both, depending on the cover you choose.

Types of Property Insurance for Home

• Building Insurance
  Structure, walls, roof, flooring, permanent fixtures
• Contents Insurance
  Furniture, appliances, electronics, valuables
• Comprehensive Home Insurance Policy
  Both building + contents
• Property Insurance for Home Loan
  Mandatory cover required by many lenders
• Tenant/Rental Contents Cover
  Contents protection for rented homes

Benefits of Property Insurance

There are several benefits of buying property insurance, explained below:

• Sense of Security: Purchasing a property requires a significant investment, and when you insure it with a property insurance plan, you have a sense of security and can live peacefully.
• Financial Assistance: Purchasing this gives you a sense of security as the insurer becomes liable on your behalf to provide financial assistance in case of any loss or damage caused to your property.
• Better Coverage: Getting insured under a comprehensive home insurance plan provides you with better coverage against all kinds of unforeseen damage or loss, such as theft, fire, accident, natural calamity, etc.
• Faster Recovery: When you get insured under a property insurance plan then you are aware of the fact that the home insurance company will provide compensation for the loss or damage incurred in an accident or natural calamity, as well as theft and burglary.

What is Covered Under Property Insurance?

Inclusions

The property insurance plan provides cover for the following:

• Fire: Any loss or damage caused to the property due to a fire accident is covered.
• Theft & Burglary: If there is theft or burglary on your property, the insurer will provide coverage.
• Electrical Breakdown: If any of your electrical appliances are damaged due to an electrical breakdown, the insurer will provide cover.
• Man-made Hazard: The insurance company will provide cover for any man-made disaster arising from riots, terrorism, strikes, etc.
• Natural Calamity: The insurance plan will provide coverage for loss or damage caused by natural calamities, such as floods, typhoons, and earthquakes.
• Accidental Damage: Coverage will be provided to the insurer for accidental damage to the property.

Exclusions

The insurer will not provide cover for the following:

• War: Loss or damage caused by war or a warlike situation will not be covered.
• Collectable Items: Loss or damage to the insured's collectables, such as coins, artwork, paintings, etc., will not be covered.
• Old Items: If the item is older than 10 years old then the insurer will not provide cover for it.
• Consequential Loss: If the damage is not the direct result of any inclusion, then no coverage will be provided.
• Willful Damage: No coverage will be provided for the willful damage of the property.
• Third-Party Construction Loss: Loss or damage to your property caused to third-party construction; no coverage will be provided.
• Wear & Tear: There will be no coverage for wear and tear of the property.
• Cost of Land: There will be no coverage for land costs.
• Under Construction Cover: No coverage will be provided to the insured's under-construction building.

*Disclaimer: The inclusions and exclusions listed above represent the general coverage of a property insurance policy. Actual coverage may vary from insurer to insurer. For detailed terms, conditions, and policy wording, please visit the respective insurer’s official website.

Who Should Buy Property Insurance?

A property insurance policy is especially meant for:

• Homeowners who want to protect their house structure and belongings from fire, theft, and natural calamities.
• People living in areas prone to floods, earthquakes, or other natural disasters.
• Property owners taking a home loan where insurance is required by the lender.
• Landlords who want to safeguard their rented property and rental income.
• Shop and commercial property owners looking to cover financial risks from fire, burglary, or riots.

Property Insurance for Home Loan

Many banks and lenders require property insurance for home loan approval. This ensures the lender’s risk is covered if the property is damaged due to fire or natural disasters. Using a property insurance for home loan calculator helps borrowers estimate the right sum insured and premium before purchase.

How Sum Insured is Decided of a Property Insurance Policy?

The sum insured in a property insurance policy is based on:

• Reconstruction cost of the building (not market value)
• Value of contents inside the house
• Property location and risk exposure
• Construction type and age of property

Property Valuation Calculator – Knowing Your Home’s Value

A property valuation calculator helps you estimate the current market value of your home quickly and accurately. This tool considers factors such as location, size, neighbourhood, and recent property trends to give you an approximate value for your property. Knowing the valuation is important because it influences decisions related to property insurance premiums, adequate sum insured, taxation, and overall financial planning. Using a property valuation calculator by Policybazaar ensures you choose the right property insurance for your home and avoid being underinsured or overpaying for coverage.

Factors Affecting Property Insurance Premium

Your property insurance premium or property insurance price depends on:

• Location of the property
• Construction type (RCC, wooden, etc.)
• Sum insured selected
• Add-ons chosen
• Security features and claim history

Property Insurance Calculator – Why Use It?

You can use a property insurance premium calculator to estimate the premium instantly. Here are the benefits of property insurance calculator:

• Estimate property insurance premiums quickly
• Adjust building vs contents cover
• Compare property insurance plans from multiple insurers
• Choose the right cover as per your budget

Add-Ons Available with Property Insurance

Here are some common add-ons available with property insurance policy:

• Earthquake insurance cover
• Flood insurance cover
• Jewellery and valuables insurance cover
• Home appliance insurance cover
• Alternate accommodation cover
• Loss of rent cover

How to Renew Property Insurance?

When you purchase a property insurance policy, it comes with a validity period. You are required to renew it before its expiry date to maintain continuous coverage. Here are the steps that you can follow to renew a property insurance plan:

• Step 1: Visit the official website of the insurer
• Step 2: Enter your details, such as policy number, name, policy name, etc.
• Step 3: Now, click on the option of “Renew policy”
• Step 4: Review your plan and proceed
• Step 5: Add or remove any particular add-on as per your requirement
• Step 6: Now it will show you the final premium amount
• Step 7: Pay the premium amount using credit/debit, net banking, UPI, etc. as per your convenience
• Step 8: The insurer will send you a confirmation message to your registered mobile number and a confirmation email.

Make sure that you renew your insurance plan before the expiration date to get continuous coverage.

How to Raise a Claim Under Property Insurance?

Follow the steps mentioned below to raise a claim under property insurance.

• Inform the Insurer: Inform the insurance company as soon as possible.
• Take Pictures of the Damage: As proof, take pictures of the damage to the property.
• Keep Documents Ready: Keep the documents ready.
• Help Insurer During Inspection
• Compensation

Why Buy Property Insurance from Policybazaar?

Buying property insurance online from Policybazaar.com allows you to enjoy the following benefits:

• Compare property insurance from top insurers in one place
• Instant insurance quotes and premium estimates
• Easy-to-use property insurance calculator
• 100% online and paperless process
• Assistance during claims and renewals
• Transparent property insurance premiums