Importance of Property Insurance

Importance of property insurance

29 Mar 2019

Importance of Property Insurance

Investing in a property is the investment of a lifetime for the common man. It is probably the biggest investment the common man makes in their lifetime. It is years of savings of the hard earned money. So, it is for the best that the savings do not go into a waste or worse, into a loss. Taking out insurance of the property is the best way to save and protect the savings of the lifetime.

The basic idea behind taking out insurance of the property is not to become financially crippled following a loss. The insurance allows one to stay financially whole during dire circumstances. This is the darker side one evaluates before taking out the insurance. This is not the only reason, but it is one of the few. Before jumping into investing randomly in some properties, check out the Villas in Palakkad. They are surely worth your investment

The insurance of a property is not a luxury, it is a basic necessity 

  • Insurance provides protection against property damage

 

Irrespective of the size, location, and type of property, it is vulnerable to natural calamities and blunderings of a thief. So property insurances cover damage costs due to floods and monsoon, fire, earthquake, hurricane, and burglaries. Suppose the property is built on land which is susceptible to erosion and the house comes crashing down, it is a good thing that the property has insurance.

  • Insurance provides protection for jewellery and art

This is for owners who own expensive jewellery and art pieces or other valuable art artefacts in their homes. Adding a floater to the property insurance has everything covered. This comes in as an Add-On feature in the property insurance. Moreover, this add-on feature will cover any damages to the personal items. Though, one should keep in mind that, this add-on feature only pays out a fixed amount and not more than that.

  • Insurance provides protection against liability

Liability coverage protects the homeowners from incidents that occurred in the surrounding neighbourhood or an incident occurred in the next door neighbour’s house and has affected you. Liability coverage provides damage costs to such incidents that may happen any time, unannounced.

  • Insurance provides protection for commercial ventures

If the homeowners decide to rent out the place to a family with kids, or to college students turning it into a dorm, or singles with pets, then the homeowners are generally held accountable for any structural damage or physical damage caused during the time of tenure. In cases where the tenant gets injured and files a lawsuit, the insurance may also provide some coverage.

Gathering the final thoughts about the insurance of the property

These were a few basic guidelines to keep in mind while sealing a deal while buying the insurance. It is of utmost importance that one must follow the checklist for property insurance before nailing the deal. One must also read the policy thoroughly and understand the terms and conditions of the same. Second guessing does not help. What helps is knowing what the policy is covering for and what not.

Knowing the coverage helps while claiming. Be safe and be covered.

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