This guide to property insurance would be helpful for you while buying your home insurance policy. Use this checklist to see if you are fully covered against any property-related loss. It covers your house or building against an excess of risks/damages. This should cover the building, plumbing, heating, air-conditioning, etc. However, the land on which your house has been built would not be covered under this home insurance cover.
Maintaining the appropriate insurance is good to the financial health of any small business. An unexpected or catastrophic loss can cause irreparable harm to a company’s balance sheet, will force even a well-managed company out of business. Understanding your areas of exposure and identifying insurance products that can help you manage risk.
COVER FOR ADDITIONAL STRUCTURE
Any non-attached structure such as a detached garage, backyard shed, a fence around your house, swimming pool, driveway, mailbox, etc. are also covered under your home insurance policy and you should check for the same.
COVER FOR PROPERTY OR PERSONAL POSSESSIONS
The home insurance policy also provides coverage for the contents of your house against various risks. This cover would include electrical appliances such as personal computers, microwaves, television sets, refrigerators, air-conditioners, etc. Moreover, this cover would also include furniture such as beds, couches, rugs, dining tables, etc. and even your expensive jewellery present in your house. You must ensure the sum assured is appropriate for all these items and everything is mentioned in the policy.
COVER FOR AN ALTERNATE ACCOMMODATION
The policy should give cover for your alternate expenses in case of any damage to your insured house. Under this cover, the expenses, which would be included are the additional rent, food, travel, and other expenses.
COVER FOR LIABILITIES
You should have the cover for any legal liabilities, which might arise due to any injury, harm, or damage caused to a third-party person/property within your premises or by you.
AVAILABILITY OF ADD-ONS
There are some additional benefits that you can avail from your home insurance cover if you are opting for the add-on covers. The most common add-ons available in the home insurance policy include terrorism cover, etc. These add-on covers can be added into your insurance cover on the payment of an additional premium and you can choose the ones you find appropriate.
WHAT ARE THE EXCLUSIONS
Expenses, which are not covered include loss or damage caused due to depreciation, loss caused due to nuclear war, loss or damage caused due to war/invasion, damages caused due to volcanic eruptions, etc. It is important to analyse and understand the exclusions before you purchase a home insurance policy.
INSURANCE PROVIDER
One of the important checkpoints while purchasing your home insurance policy is the selection of the correct insurance provider. It is quite important to buy the right insurance plan, however, it is more important to get an insurance provider who would co-operate with your requirements. In case of an insufficient insurance cover, the use of your home insurance policy at the time of need would become difficult.
COST OF YOUR HOME INSURANCE POLICY
You must keep your budget in mind while purchasing a home insurance policy. You would wish to have the right home insurance plan from your preferred provider. You must compare insurance policies from other providers and opt for the ones, which provide good coverage at a reasonable premium.
BUILDING COVERAGE
If you own your office or warehouse, you need to maintain an all-risk policy that will cover you in the event of a loss to the structure. Buildings need to be insured for the amount it would take you to repair or rebuild them. Many policies feature a co-insurance clause that can penalize you for low valuations, even for smaller or partial claims. Insuring building for a low coverage can be make consequences following a loss.
BUSINESS PROPERTY
Business property includes equipment, fixtures, furniture, merchandise and computers. You should maintain enough insurance to cover everything in your location if it were to suffer a loss. Many businesses underestimate the value of their property. A solid first step to avoid this situation is to make a list of the property you own and place an estimated value.
ADDITIONS AND ALTERATIONS
Most insurance policies consider any features that are permanently attached to the walls, ceilings or floors of the building to be part of the structure. Therefore, even if you rent your office or space, you should insure any improvements you make to the property.
EQUIPMENT BREAKDOWN
Equipment breakdown coverage responds when a vital piece of machinery breaks down unexpectedly. At this situation, a business would be protected if equipment breakdown insurance was in place. Business property insurance only responds if a covered loss, such as fire or water damage, harms your equipment; for any loss caused by the machinery itself, you need to protect yourself with equipment breakdown coverage.
CONTENTS IN TRANSIT
If you regularly import, export or ship any property, you need to be protected while it is in transit. Most standard insurance policies offer only limited coverage for property while it is off-site. For total protection, you need to purchase a separate policy.
CONCLUSION
Hence, an unexpected incident such as a burglary or a natural disaster can happen anytime and can cause severe damages to your property. A property insurance policy would help in providing all-round protection to you and your property. With a checklist in mind, you would get a useful property insurance cover that ensures full coverage against any loss.