Top questions answered on property insurance

We all have heard about property insurance but only a few know about the basic details. Here are a few questions answered about property insurance. Let us take a look!

Why do I need a property insurance?
Property insurance requires you to pay out an annual premium based on which your property and belongings will be insured to protect you in the event of any loss or damage occurring due to break ins, theft or other accidents such as fire or other natural disasters. Compared with the cost of having to replace large portions of your property if damaged, the premium on the property insurance is relatively low and provides a good safety net to fall back upon.

What is the difference between property insurance and home insurance?
Property insurance most typically will provide protections against losses incurred to one’s property on account of fire, theft and some kinds of damage caused by inclement weather.

Home insurance, also known as home owner’s insurance is a type of property insurance that also covers personal insurance that covers losses or damages to one’s belongings that are kept on the specified property and also liability insurance which covers any losses caused due to accidents that happen on the property to oneself or others. In simpler terms, home insurance insures the people and objects as well.

How much would it cost to insure my property?
The cost of taking out property insurance would depend on the current market value of your property, factoring in the depreciation. If you have more open land than building on your property, it might be wise to calculate the premium cost based on the cost of rebuilding property than on land value. Also, ensure that you factor in the cost of all objects and possessions in every room of your house and on your property. Include all items that have been bought by you that would have to be replaced in the event of any damage. To this value also add a percentage towards inflation. Try to do a correct assessment of the value of your possessions as undervaluing may leave you largely uninsured, while over valuing may lead you to pay higher premiums. The average insurance premium cost annually for property insurance in the country is between US$300 and US$1000, based on the size of the property to be insured.