What is Property Insurance? Understanding Types, Benefits, and Coverage

Whether you are a homeowner, investor, or renter, having a comprehensive understanding of property insurance can be instrumental in protecting your investment. While the term ‘property insurance’ is spoken about a lot, especially when it comes to residential spaces, offices, businesses, or natural disasters, much of the population remains unaware of the specifics of this much-needed financial phenomenon. Throughout this blog, let us take a closer look at what property insurance actually means, the different types of it, the benefits it offers, and what it typically covers. 

Property Insurance

The phenomenon of ‘Property Insurance’ works like any other type of insurance. Property Insurance can be defined as a financial safeguard that shields your residential properties, commercial properties, rental spaces, and personal belongings against losses or damages caused by unpredictable events such as theft, accidents, or natural disasters. Acquiring property insurance allows you to avail of the financial reimbursement for the assets if they are damaged in any unexpected catastrophe. So, no matter how small your property investments are, acquiring property insurance can help you gain peace of mind, knowing that all your investments remain extensively protected. 

Types of Property Insurance

Property investments range from your entire residential space to all the things that you own within your house, such as furniture, electronics, art, and other valuable items. This means that there are multiple types of property insurance curated and tailored to meet the protection needs of different assets effectively. Let us go ahead and take a look at the major types of property insurance and their detailed specifications: 

Homeowners Insurance: Your home is your biggest investment, and homeowners insurance remains an important and highly prioritized form of property insurance. In case of disasters or damages done to your home, homeowners insurance provides you with the cost of repairs or replacements and even the essential coverage to help you rebuild your home. Other than the compensation for the physical structures of your home, a homeowners insurance also offers: 

• Coverage on personal items such as electronics, furniture, clothing, and more.
• Coverage includes liability for injuries and damages caused by or during the destruction of your property.
• Coverage for temporary living if you are forced to relocate to a temporary living space in case of extensive damage or persistent natural disasters.

Renters Insurance: If you are renting apartments in Kerala, renters insurance is a smart and reliable way for you to protect your belongings and acquire reimbursements, even when you don’t own the property. While the landlord’s property insurance will protect their space, the renters’ insurance will ensure coverage on the renters’ personal articles such as furniture, electronics, clothes, and more. The renters' insurance covers the following: 

• Coverage on personal items and belongings from unpredictable events such as fire, theft, or natural disasters.
• Coverage for liability for medical treatments and expenses or legal fees in case of injury during property devastation.
• Coverage for additional living costs that are required for temporary accommodation due to the uninhabitable conditions of the rented residential space.

Commercial Property Insurance: Having commercial property insurance for your business space is essential to keep your business assets protected. From the structural building to all the equipment and inventory, as well as the compensation for the loss of income, commercial property insurance remains one of the most instrumental property insurances, as it can help businesses recover with zero downtime. Commercial property insurance comprises the following: 

• Coverage for damages to the overall structure and even the foundation.
• Coverage for damaged equipment, inventory, furniture, and other essential items that are required in the proper operation of the business.
• Coverage for liability due to accidents on the property protects the business from further medical and legal expenses.
• Coverage to compensate the workforce by paying them throughout the period when the business remains suspended.

Flood Insurance: After the 2018 floods in Kerala, flood insurance has been given a high priority. Flood insurance is designed to protect your property from the havoc caused by floods. Standard property insurance does not automatically cover damages caused by floods from storms, heavy rain, or hurricanes. These floods can wreck your property as well as your personal items. A standard flood insurance policy offers the following: 

• Coverage for the physical structure of your property.
• Coverage for your personal items, such as clothes, electronics, and furniture.
• Coverage on clearing the debris on your home brought about during the flood.

Also Read: Things to Check Before Buying Your Apartment in Kerala 

Property Insurance Coverage Options

Now that we have covered the main types of property insurance and their benefits, let us take a closer look at the different coverage options that come with different types of property insurance. As each varies, it is essential to know the different coverage options so that you can ensure that your property remains protected. Three of the most common coverage options include: 

Replacement Cost: This is the highest coverage option as it covers the full cost of repairing and replacing your damaged property assets with the highest quality materials without depreciating the value of your property. If your belongings are also damaged, this coverage enables you to be compensated for the components at their present market values. 

Actual Cash Value: Commonly abbreviated as ACV, this option offers you only the depreciated value of the property at the time of the insurance claim. ACV comes at a lower premium cost but is not a desirable option if you want to fully cover the expense of replacing your belongings with new components. 

Extended Replacement Cost: This coverage option allows you to attain a higher estimate if the cost of rebuilding increases and is useful in situations where construction and material costs may have risen in price. This form of insurance is exceptionally good for smoothly handling any unforeseen price hikes during the reconstruction of your property. 

Builders in Kerala - Desai Homes

If you are looking for a secure and comfortable home to invest in Kerala, finding a reliable and trustworthy builder in Kerala is as important as acquiring the right insurance. Desai Homes has been the go-to option for apartments in Kerala due to our legacy of commitment, excellence, and promptness in providing premium homes that are both modern in design and effectively functional. If you are a homebuyer, investor, or simply looking for a good space to rent in Kerala, Desai Homes ensures you find the perfect property that suits your lifestyle, budget, and long-term goals. Choose the most trusted builders in Kerala - Desai Homes. Contact us today!