• Buying a property has long been regarded as a symbol of wealth and ranks among the top ambitions of many individuals. A home loan serves as a crucial facilitator that has simplified the process of realizing one’s dream of reaching the significant life achievement of home ownership. It is essential to recognize the importance of protecting your property by obtaining property insurance. Property is likely the most valuable asset one has, and property insurance aids in securing this asset against risks such as damage from weather, fire, burglary, and more.

Why Do You Need Add-ons to Property Insurance?

• Basic property insurance offers coverage for the physical damages inflicted on the property. These damages may arise from natural disasters such as heavy rainfall, earthquakes, fires, and lightning. However, it is not only the physical structure that requires protection; the hopes and dreams represented by valuables, furniture, jewelry, and other belongings also need safeguarding. This is where riders or add-ons become relevant. When these riders are added to property insurance, they provide protection that extends beyond just the structure itself. You can incorporate these riders into your property insurance for an additional nominal premium.

Popular Add-ons And Their Benefits

• The aim of these supplementary covers is to assist a property owner in situations where standard property insurance may fall short. Below are some common add-ons along with their advantages.

Liability cover

• Liability cover covers the expenses associated with medical costs if someone is injured on your property or the repair costs for any damage caused to their property while on your premises.

Pedal cycle cover

• This add-on is tailored for cycling fans. With pedal cycle cover, you need not stress over costs arising from third-party liability or any damages to your bicycle when you are cycling.

Electrical/Mechanical breakdown

• As implied by the name, this type of add-on offers coverage for the electrical and electronic equipment of a policyholder in the event of damage or breakdown. The surge in technological advancements has resulted in a considerable increase in the number of electronic devices utilized at home. Dependence on electronic devices has grown over time, including items like refrigerators, televisions, home theatre systems, and water purifiers. An electrical/mechanical breakdown cover renders financial support in cases of damage or theft of these types of equipment. It covers the repair and servicing of electronic devices for the policyholder.

Burglary/Theft cover

• As previously mentioned, these add-ons deliver insurance that extends beyond just the building of the property. A burglary/theft add-on cover protects the contents within a home. Any damage or loss to a home’s contents due to burglary or theft is included within this add-on. The insurer addresses the financial losses incurred by the policyholder as a result.

Jewelry cover

• Jewelry has long been viewed as a prudent investment and a significant asset to possess. One reason it is frequently favored over alternative investment forms is its reduced volatility compared to other markets. While owning jewelry is deemed a worthwhile investment, ensuring its security can be quite challenging. With the add-on rider of jewelry insurance coverage, you need not worry, as this add-on offers protection against all risks to your jewelry and other valuables.

Conclusion

• Losses experienced due to various threats to property covered under property insurance typically include damages to the structure caused by adverse weather or natural disasters. However, it is the supplementary riders in addition to the property insurance that provide comprehensive protection for the structure and contents of the home. It offers reimbursement to the policyholder for loss or damage to the property and its contents. Furthermore, property insurance gives financial support to individuals injured on the insured property.

Disclaimer:

• The preceding information is for illustrative purposes only. For further details, please consult policy wordings and prospectuses prior to completing the sale.