If you own a residential or commercial property, property insurance is a must for you. It safeguards property owners like you from incurring huge financial losses in case of an unforeseen mishap. For example, incidents like fire, theft, burglary, and natural calamities can cause severe damage to a property and result in gigantic losses for the property owner.
Property insurance provides financial reimbursement to the property owner in such instances, where his/her property and its contents get damaged. Depending upon the type or property and perils it cover, property insurance policies can be classified into various categories. Here are some common types of property insurance available in India:
Homeowner’s Insurance
This is the most common and most widely purchased type of property insurance in India. As the name suggests, homeowner’s insurance protects the owner of housing properties from incurring financial losses in case of any untoward incident. In fact, many lenders have made homeowner’s insurance mandatory for those seeking to finance their house.
Renter’s Insurance
Renter’s or Tenant’s Insurance provides coverage similar to the homeowner’s insurance. However, this type of property insurance is exclusively meant to cover a tenant’s personal belongings stored inside his/her rented house. It may include clothes, jewellery, furniture, electronic appliances etc. Some policies also cover additional liabilities a tenant may incur towards his/her landlord.
Commercial Property Insurance
This is another very commonly purchased type of fire insurance in India. This type of property insurance is meant to protect commercial properties, such as offices, warehouses, shops, restaurants, factories etc. Availing commercial property insurance is prudent for business owners to safeguard their working capital in case of any damage to their business premises and its contents.
Natural Disaster Insurance
A standard property insurance policy may or may not cover natural disasters. However, perils such as earthquake, hurricane, storm, flood, cyclone etc. have the potential to completely destroy a property, resulting in huge financial losses for the owner. A special type of property insurance, known as natural disaster insurance, secures a property against such perils.
Fire Insurance
Accidental fires are one of the most common mishaps that can cause huge damage to properties and its contents. Fire insurance is a special type of property insurance that provides coverage against accidental fires and allied perils, including explosion, implosion, lightning, impact damage etc. A fire insurance policy can be purchased for residential as well as commercial properties.
In Conclusion
Now that you know about the different types of property insurance available in India, you’re better placed to choose the right coverage for yourself. Also, it’s prudent to compare various offerings from different insurers and choose a policy that’s providing best coverage at an affordable price-tag. You can also buy property insurance online to get additional discounts on premium.