Common Types of Property Insurance in India
Property insurance gives you financial coverage against the damages caused to your private or commercial property due to fire, earthquake, theft, and burglary, among other causalities. A property insurance policy is quite essential for you if you own private property or commercial property. This is because repairing property damages is usually quite expensive. There are several different types of property and casualty insurance policies available in the market today. To give you a better understanding, here are a few common types of property insurance policies.
Renter’s property insurance
A renter’s insurance policy provides financial coverage to the policyholder if their belongings in a rented property are damaged due to man–made or natural calamities. Belongings such as jewellery, expensive electronics, furniture, and other such items are covered under the renter’s insurance. Many renter’s insurance policies also cover you against the liabilities that you might incur against the proprietor. A renter’s insurance can also be used for commercial purposes. Business owners buy the renter’s insurance when they store their business assets or products in a third–party storage unit.
Homeowner’s property insurance
This is one of the most commonly known types of property insurance policies in India. A homeowner’s property insurance, or home insurance, provides you financial support for repairing the damages incurred to your personal property due to a natural and man–made calamity such as fire, theft, earthquake, or burglary. The homeowner’s insurance not only covers your property but also your belongings that are kept inside the property. Furthermore, reputed insurance companies also cover losses you may incur due to the bursting or overflowing of water tanks and pipes.
Commercial property insurance
Commercial property insurance covers you for damages incurred to your property due to a natural or a man–made calamity. However, commercial property insurance will only cover commercial properties, i.e., properties used for business purposes. Do remember, commercial property insurance is different from commercial general liability insurance. While commercial property insurance covers only your property, commercial general liability insurance protects you against third–party liabilities that are caused by your business.
Fire property insurance
The eruption of fires is one of the most common causes of property damage. An accidental fire can erupt due to various purposes and bring in a load of expenses for the property owner to repair. Hence, a fire insurance policy can be procured for commercial as well as private properties. Do note that a fire insurance policy will not cover damages inflicted by a fire that is caused due to wilful negligence.
Public liability property insurance
A public liability property insurance is one of the most commonly purchased P & C insurance types in India by business owners. Public liability property insurance provides you financial coverage against the damages that a third–party incurs on your property. As per the Environment Protection Act of 1986, it is mandatory for business owners, like café–owners and car garage owners, to have a public liability property insurance policy.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.