Property Insurance – Definition, Coverage, How it works, Features, Benefits, Exclusions, Claim Process, Eligibility Criteria, Quotes | Buy and Renew Online

What is Property Insurance? - Definition

Property Insurance is an Insurance Policy that provides coverage against loss or damage to the Insured Property such as Residential Property such as homes and Commercial Properties such as Offices, Factories and its contents. Property Insurance provides protection against Loss or Damage to the Insured Property various types of Perils such as Fire, Explosion, Implosion, Storms, Floods etc. In case of any loss or damage, Property Insurance covers the cost of Repair or Replacement of the Insured Asset. A Property Insurance can be used to insure all types of assets: such as factory, home, offices, buildings, plant and machinery etc.

What are the coverages under a Property Insurance Policy?

A Property Insurance Policy provides coverage against loss or damage to Insured Assets caused due to the following Perils:

1. Fire
2. Explosion and Implosion
3. Storms, Floods and Inundation
4. Earthquake
5. Impact Damage
6. Bursting or overflowing of water tanks, apparatus and pipes
7. Subsidence of the land on which the Premises stand, Landslide, Rockslide
8. Leakage from automatic sprinkler installations
9. Terrorism
10. Theft and Burglary

What are the Exclusions under a Property Insurance Policy?

A Property Insurance Policy excludes Loss or Damage to the Insured Assets due to the following:

1. Fire caused by any undergoing heating or drying process
2. Burning of Insured Property by order of any Public Authority
3. Any deliberate, willful or intentional act or omission
4. Loss, destruction or damage to stocks in cold storage caused by change of temperature
5. Loss, or damage by spoilage resulting from the interruption or cessation of any process caused by operation of any of the Insured Event
6. Loss or Damage caused to Insured Assets due to War, Invasion, War-like operations or Ionizing radiation
7. Loss or Damage caused caused by Pollution or contamination unless the pollution or contamination itself has resulted from an Insured Event, in which case only physical damage to the Insured Property is covered, or an Insured Event itself results from pollution or contamination

What are the Add-On Covers available under Property Insurance Policies in India?

Property Insurance Policies in India offer the following Add-On Covers:

1. Removal of Debris Cover
2. Architects, Surveyors and Consultant’s Fees
3. Impact Damage due to Insured’s own Rail/Road vehicles, Forklifts, Cranes
4. Earthquake Coverage
5. Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon and Tornado (STFI Cover)
6. Terrorism Cover
7. Omission to Insure Additions, Alterations or Extensions
8. Escalation Cover4
9. Start-Up Expenses

What are the types of Property Insurance in India?

The different types of Property Insurance Policies available in India are as follows:

1. Bharat Griha Raksha Policy: A Bharat Griha Raksha Policy provides Insurance Coverage for Residential Buildings and Homes against loss or damage to structure and contents due to fire and allied Perils. The Insurance Policy offers two main types of coverage:

• Home Structure Cover: This covers Physical Loss, Damage, or Destruction of Building Structure due to Insured Perils such as Fire, Explosion, Earthquake, Storm, Flood, Landslide etc.
• Contents Cover: This Covers the Physical Loss, Damage, or Destruction of the general contents of your home caused by Insured Perils.

2. Bharat Sookshma Udyam Suraksha Policy: A Bharat Sookshma Udyam Suraksha Policy provides coverage against Loss or Damage to the Insured Assets due to Fire and allied Perils. The Policy is applicable for companies where the Total Value at Risk across all Insurable Asset Classes at one location does not exceed Rs5 crores.
3. Bharat Laghu Udyam Suraksha Policy: A Bharat Laghu Udyam Suraksha Policy provides coverage against loss or damage to assets because of fire and allied perils. The Policy is applicable for businesses where the Total Value at Risk across all insurable asset classes at one location exceeds Rs5 Crore but does not exceed Rs50 Crores
4. Standard Fire and Special Perils Insurance Policy: A Standard Fire and Special Perils Insurance Policy provides coverage for loss or damage to property caused by fire and allied perils like Earthquakes, Explosions, Implosions, Storms, Floods etc. where the Sum Insured where the Total Value at Risk across all insurable asset classes at one location exceeds Rs50 Crores. The Policy provides coverage to buildings, plant and machinery, stocks, furniture, fixtures and fittings.
5. Industrial All Risk Policy: An Industrial All Risk Insurance Policy (IAR Insurance Policy) is a comprehensive package policy which provides coverage against a wide range of Perils such as Fire, Theft, Burglary, Machinery Breakdown and Business Interruption. The Policy offers a wider coverage as compared to a Standard Fire and Special Perils Insurance Policy.

What factors impact the premium of a Property Insurance Policy?

The following factors impact the Premium of a Property Insurance Policy:

1. Nature of Business: The Nature of Business impacts Property Insurance Premiums. For instance, the premium for a Chemical Factory will be higher than a premium for a Restaurant business, all other factors remaining the same.
2. Fire Safety Measures: Fire Safety measures within the Insured Premises also impact Property Insurance Premiums. A Premises having Fire Extinguishers and Fire Alarms Systems will have lower premiums than Premises with no fire safety measures.
3. Sum Insured: The Sum Insured of the Policy is another factor which impacts Property Insurance Premiums. A Policy with a Sum Insured of Rs100 Crores has a higher premium than a Policy with a Sum Insured of Rs50 Crores.
4. Earthquake Zones: Risks located in a Earthquake Prone Zone will have a higher Premium than Risks located in areas with a lower chance of earthquakes.
5. Add-On Covers: Apart from basic covers, Fire Insurance Policies provide add-on covers to enhance Policy Coverage. Such add-on covers also impact premiums of Property Insurance Policies.

Which Insurance Companies offer Property Insurance in India?

The following Insurance Companies offer various Property Insurance Plans in India:

1. New India Assurance Company
2. The Oriental Insurance Company
3. Bajaj Allianz General Insurance Company
4. SBI General Insurance Company
5. TATA AIG General Insurance Company
6. HDFC Ergo General Insurance Company
7. ICICI Lombard General Insurance Company
8. GoDigit General Insurance Company
9. Iffco Tokio General Insurance Company
10. Future Generali General Insurance Company
11. United India Insurance Company
12. National Insurance Company

What are the Benefits of Property Insurance?

A property insurance offers the following benefits:

1. Comprehensive coverage: A Property Insurance Policy offers comprehensive coverage, covering various risk exposures for your property and its contents such as Fire Damage, Damage due to Earthquakes, Storms, Theft, Burglary etc. Coverage for Structure ensures protection for the property structure, such as a home or building, ensuring repairs or rebuilding costs are covered while the Cover for Contents covers personal belongings or inventory and plant and Machinery within the insured property, safeguarding against damage or theft.
2. Financial security: You get financial peace of mind knowing that your property as well the belongings such as equipment, jewellery, furniture, etc. are covered and you will be reimbursed in case of any damage to the same.

Why do you need Property Insurance?

When you are running a business, you invest crores of rupees in Plant and Machinery, Buildings, Inventory, Warehouses etc. Any damage to these assets can adversely impact the smooth running of your business. A Fire can damage the building along with the machinery and inventory stored inside it. Thus, it is extremely important to have Insurance Coverage for these assets in the form of a

Who needs a Property Insurance Policy?

Anyone who owns any type of property requires a Property Insurance Policy. Following people should always purchase a Property Insurance Policy:

1. Homeowners: Homeowners should purchase a Property Insurance Policy to secure their home against risk of loss or damage by Fire, Burglary or Damage by Natural calamities like Earthquakes, Storms, Floods
2. Small and Medium Business Owners: Small and Medium Business Owners should secure their Inventory Stock, Plant and Machinery and Factory and Warehouse buildings with a Property Insurance Policy. Whether you are a trader with a lot of Warehouse Stock or a Restaurant or Factory Owner, various types of Property Insurance policies are available to secure against the risk of loss or damage to assets.
3. Large Enterprises: A Large business should purchase an Industrial All Risk Insurance Policy which offers comprehensive coverage against multiple risks such as Material Damage, Machinery Breakdown, Theft, Burglary etc. Additionally, in case of Fire Damage, the Business Interruption Section also covers Loss of Profits faced by the business in case the business operations are interrupted

What is the Claims Process for Property Insurance?

The Claim Process for Property Insurance is as follows:

1. Intimate the Insurance Company or the Insurance Broker: Intimate the Claim Incident to the Insurance Company. The Company will register a Claim and provide a Claim Intimation Number
2. Appointment of Surveyor: The Insurance Company will appoint a Surveyor who will examine the damage and will estimate losses under the Policy.
3. Document Submission: The Insured will need to submit the requisite documents such as Claim Form, Forensic Report etc.
4. Claim Settlement: If the documents are in order, the Insurance Company settles the claim in accordance with the terms and conditions of the Policy.

What documents are required to claim for Property Insurance?

The Policyholder will need to submit the following documents in order to make a Claim under their Property Insurance Policy:

1. Policy Copy
2. Duly Filled and Signed Claim Form
3. Fire Brigade Report
4. Police Report
5. Forensic Report
6. Newspaper Report of the Fire Accident if available
7. Indian Meteorological Department Report in case of Weather Damages

How to buy Property Insurance with Qian?

You can follow the below mentioned steps if you wish to purchase a Property Insurance Policy with Qian:

1. Email us at insurance@qian.co.in or call us on 022-35134695 to avail a Property Insurance Quote
2. Provide relevant information such as Expiring Policy Details, Description of Business, Nature of Property, Sum Insured and Prior Claims Experience
3. Qian will provide you with quotes from multiple insurers. You have to select the quote and plan best suited to your requirements
4. After selecting the Plan, you have to pay the Premium to the Insurance Company and Qian will issue the Insurance Policy with 24 hours.

Get best Quotes for your Property Insurance Policy with Qian!

Qian Insurance Broking is a licensed Insurance Broker for Property Insurance Policies. Our team assists you with the best Property Insurance Quotes and also helps with the Claims Process. We provide customised Insurance Solution for your Property, 24*7 Claims Assistance for your Property Insurance. If you wish to purchase a Property Insurance Policy, you can email us at insurance@qian.co.in or call us on 022-35134695. We would be glad to assist you