Property insurance as we all know it is the protection of every kind of property like business buildings, houses, flat, retail shops etc. It protects you from loss and damages from, fire, theft and weather damage. There are many forms of property insurance, which can cover almost all types of loss incurred on the property. The owner has a right to choose one insurance type or all of them it is up to the owner. The insurance forms include earthquake insurance, home insurance, or boiler insurance, fire insurance and flood insurance.
What are the ways of property insurance?
There are two ways of insuring which are open perils and named perils. Open perils cover those losses or damages which may be excluded in the policy. The open perils include nuclear incidents, acts of terrorism, and war, earthquakes, floods. The named perils are the common or normal loss or damages which are mentioned in the property insurance policies. The named perils include damage causing events like lightning, explosion, fire and theft.
What is covered under Perils?
The complete list of loss or damage which will Perlis cover.
- Tornado, cyclone, flood & inundation, Storm, typhoon, tempest, hurricane.
- Impact damage
- Malicious damage
- Subsidence, landslide
- Bursting or overflowing of tanks
- Missile testing operations
- Aircraft damage
- Riot, strike
- Explosion, implosion
- Bush fire
What are the Exclusions in property insurance?
The following are the exclusion in property insurance
- Loss or damage to the stocks which effects of change in temperature
- Loss or damage caused by civil war, war and kindred perils
- Loss or damage due to over-running of electric machines
- Loss or damage caused by nuclear activity
How to Claims If loss happens due to fire?
Fire is the common way for loss or damage or your house or household items. Well, if the fire loss happened and it covers to your fire insurance policy, the insured person should notice thereof to the insurance company. Within 15 days of the loss or damage, the person should submit a claim in writing about the loss or damage he may face because of fire. He must also write in detail about the types of goods and the value of these goods. This notice must submit to the insurance office in order to approve the payment application. You as an owner must write detail of other insurances if you have with that insurance company.
What are the major factors That Affect Property Insurance Rates?
We are going to discuss the factors which affect the property insurance rates.
- Size of business premises
- Safety and security
If you are living in those areas where property rates are higher than your insurance must also increase. You may have to pay more premium than others.
Size of business premises
If your business is larger than you have to pay more premium but if your premises size is smaller than it automatically reduce the insurance rates.
Safety and security
It matters a lot, if you are located in those areas where there are more chances of theft or fire then you have to pay more premium.