• Before we delve into the different types of property insurance, let’s grasp the comprehensive meaning of property. According to the Cambridge Dictionary, property refers to anything that is owned by someone, and that individual possesses legal rights over it. It can be tangible, such as a house, vehicle, or equipment, or intangible, such as patents, stocks, etc. You can safeguard these properties with property insurance against various risks, including theft, fire, flood, etc. However, one category of property insurance only covers a portion of these risks. To shield your assets from these risks, it is advisable to explore various types of property insurance. In this article, let’s examine the different types of property insurance. Understanding them will assist you in determining which insurance best fits your needs.
• Various Types of Property Insurance:

1. Home Insurance

What is it:
If you own a home, obtaining a home insurance policy is essential to protect you financially from losses caused by property damage. You can insure your homes, individual buildings, apartments, villas, etc. A home insurance policy will safeguard you against damages to the structure of your home and lost or damaged possessions.
What does it cover:
• Losses due to burglaries.
• Losses due to fire and natural disasters.
• Losses due to man-made disasters and risks.
• Losses to possessions.

2. Standard Fire and Special Perils Insurance

What is it:
In basic terms, fire insurance protects your property against loss caused by fire and related perils like lightning or the explosion of household appliances. Typically, the policy includes a list of related perils that are covered. Under this kind of property insurance, you can insure your plants, machinery, buildings, furniture and fixtures, and other valuables.
What does it cover:
• Losses from natural disasters such as earthquakes, fires, forest fires, lightning, floods, storms, etc.
• Losses due to riots, explosions, implosions, strikes, missile testing activities, etc.
• Losses caused by malicious actions.
• Losses due to vehicle collisions.
• Losses from leaks from sprinklers and other systems.

3. Flood Insurance

What is it:
Typically, standard property insurance policies do not include flood-related damage. Securing flood insurance will provide an additional layer of protection. This kind of property insurance offers specific coverage for losses caused by overflowing inland or tidal waters, rapid accumulation of surface water, and mudflows.
What does it cover:
• Losses due to floods from heavy or extended rainfall.
• Losses due to snow, high tides, and thunderstorms.
• Losses from floods resulting from monsoon rainfall.
• Losses from blocked drainage or dam failures.
• Coverage for losses due to overflowing inland or tidal waters.

4. Earthquake Insurance

What is it:
As indicated by its name, earthquake insurance is a type of property insurance that financially protects you against damages caused by earthquakes. It specifically covers structural damage and other losses resulting from seismic activities.
What does it cover:
• Structural damage.
• Damage to personal belongings.
• Coverage for additional living expenses incurred if the insured property becomes unlivable.
• Coverage for lost rental income if the insured property is utilized as a rental and becomes uninhabitable.
• Harm to other structures on the covered property.

5. Theft Insurance

What is it:
Theft insurance is a form of property insurance that addresses losses resulting from theft or burglary. It safeguards individuals, businesses, and homeowners by compensating them for the worth of missing property or damages resulting from theft-related events.

6. Commercial/Business Property Insurance

What is it:
With this form of property insurance, you have the option to insure commercial or business properties such as offices, shops, restaurants, factories, and warehouses. It provides protection for businesses and organizations against monetary losses stemming from damages to their commercial properties. You can additionally request commercial/business property insurance customized to your unique requirements for specialized coverage.
What does it cover:
• Damages to the property’s structure being insured, which includes the building and any adjoining structures.
• Damages to personal property owned or leased by the business, encompassing equipment, machinery, furniture, fixtures, inventory, and supplies.
• Coverage for lost income and ongoing expenses like payroll, rent, and utilities due to temporary business operation shutdowns or interruptions.
• Coverage against claims of bodily injury or damage resulting from accidents occurring on the insured property.

Conclusion

Property insurance can protect you and your business against financial losses due to various risks. In India, standard property insurance policies cater to the diverse needs of property owners, providing protection against a range of unforeseen events. Property insurance guarantees that you receive adequate compensation for property damage or losses.

Disclaimer
The above information is solely for illustrative purposes. For further information, please consult policy wordings and the prospectus before finalizing any sales.