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Property Insurance Made Simple
Nov 25, 2023

Property Insurance Made Simple: Answers To Your FAQs

If you own property, it is likely you have invested a considerable amount of time and money into it. If an unfortunate event causes damage to your property or to its contents, it may lead to financial losses for you. To provide coverage against these financial losses, it is crucial to opt for a property insurance policy , also referred to as home insurance in some cases. As compared to other types of general insurance plans, such as health insurance or motor insurance, awareness of property insurance is relatively lower. This is unfortunate since homes are important financial assets and should be protected against different dangers. To increase awareness about property insurance and simplify it, let’s take a look at some frequently asked questions (FAQs) on property insurance and answer them.

Answering FAQs on Property Insurance 

Here are some commonly asked queries about property insurance - answered for your benefit:

1. What is covered under a property insurance policy? 

Firstly, you must understand that the coverage depends on the specific policy. Each policy has its set of inclusions and exclusions. What may be covered by one policy may be excluded by the other. Regardless, you can expect a house property insurance policy to cover the building (i.e., the structure) and the contents of the property (i.e., furniture, wall units, etc.) against fire, theft, burglary, explosions or implosions, and natural calamities such as lightning, storms, cyclones, floods, landslides, and so on, as noted in the policy wordings. * Along with it, coverage may be provided against the breakdown of domestic appliances, damage to electronic equipment, pedal cycles, fixed plate glass, and so on, as specified in the policy wordings. * Claims are subject to terms and conditions set forth under home insurance policy.

2. Does a property insurance policy cover the policyholder against third-party liabilities?

Yes, some property insurance plans cover the policyholder against third-party liabilities. The House Holders Package Policy from Bajaj Allianz General Insurance provides third-party liability coverage. So, if a third party suffers a bodily injury or damage to their property while on the insured premises, this coverage kicks into action and helps the policyholder pay for the liabilities that can crop up, subject to the policy wordings. * Claims are subject to terms and conditions set forth under home insurance policy.

3. How is the sum insured fixed for a property insurance policy?

Usually, the sum insured for such policies is fixed via two methods: reinstatement value basis and market value basis. In the reinstatement value process, the maximum amount the insurer pays depends on the cost of replacement of the damaged item, subject to the sum insured ceiling. Depreciation is not taken into consideration here. * In the market value method, the maximum amount to be paid is calculated on the market value of the item, after deducting the depreciation on the asset based on its age. * Other methods, such as agreed value basis and new-for-old basis, can also be used. Claims are subject to terms and conditions set forth under home insurance policy.

4. Are the insured contents covered under the policy if the policyholder is travelling with them?

This depends on the coverage of the specific property insurance plan you choose. In most cases, items are only covered if they are stored/present within the insured premises. * For instance, the House Holders Package policy covers jewellery. If damage occurs to it within the insured property, then compensation as specified in the policy wordings shall be provided. However, if damage occurs to the insured jewellery while the policyholder (or another member of the house) is carrying it somewhere or travelling with it, then the insurance company may not be liable. * Claims are subject to terms and conditions set forth under home insurance policy.

5. What is the claim process for a property insurance policy?

To raise a claim, you need to inform the insurer about the event that has occurred. After that, the claim shall be verified and taken to the claims department, who will appoint a surveyor. The surveyor will take a detailed look into the claim. You must provide important documents and other information as requested by the surveyor. Based on this information, the surveyor will create a report. The claim shall be processed accordingly within some days. Claims are subject to terms and conditions set forth under home insurance policy.

6. Who can buy a property insurance policy?

Any individual who wishes to insure their property and its contents can opt for a property insurance policy. To be eligible to buy a property insurance policy, you must have an insurable interest in the property. This means that you must stand to lose financially if the property suffers damages. You must also be honest about the property and the contents you wish to insure. For instance, the items you wish to insure must not be overvalued. If the insurer finds out that you have been dishonest about the valuation of your property, your claim may be affected. Claims are subject to terms and conditions set forth under home insurance policy. While the above FAQs have been answered comprehensively, please note that the information may differ from plan to plan and insurer to insurer. It is recommended to refer to your personal property insurance policy wordings for details. * Standard T&C apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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