Owning a property can be a cumbersome task. The processes are full of a variety of risks, documentation, payments, and so on. If there’s no security of such a high-involvement, high-risk factor and in such circumstances, having insurance of that property is quite a necessary thing. Adding in the uncertainty of the COVID-19 pandemic, owning a property is now riskier than ever. The guarantee of possession dates are getting tossed around and the overall real estate industry is taking the hit of numerous lockdowns coming in effect at uncertain times. This makes it even more important for getting insurance because the safety of your hard-earned money is of paramount importance. This article would speak in detail about why it is important for any individual to have property insurance.
Understanding Property Insurance
Before we even begin talking about the nitty-gritty of property insurance, let’s understand the basic definition of what it actually means. The fundamental purpose of any insurance is to guarantee your financial stability by paying a particular amount as a periodic premium so that the company will bear the burden of the losses in the future. Applying this logic in the real estate industry, property insurance is the amount you pay to secure the finances that you’ve invested in a property. The insurance would protect you against any uncertain damages or natural calamities, theft, etc. that eat off a large chunk of money from your investment. So, what does the insurance cover exactly?
Insurance Coverage
Many property owners, own the property for several reasons. Some buy it for themselves, some buy it to invest and some buy it to resell. The purpose of the purchase is defined by the type of the property, whether it is residential or commercial. Likewise, the coverage that the property insurance provides, depends on the type of property an individual owns. Nevertheless, the coverage can be classified under the following categories:
Standard fire & special perils policy: Includes damages caused by fire or natural calamities such as earthquakes, floods, storms, damages caused by explosions/implosions, man-made anti-social activities like strikes, riots, etc. This coverage can be bought by tenants residing in the home as well as homeowners.
Home structure/building insurance: This covers your home from any type of dangers or risks. Additionally, this protects any permanent fixtures such as kitchen, bathroom, ceiling, etc. in the house.
Public liability coverage: If any guest/third party causes damage to your property, this insurance covers such damages
Burglary & theft: In case of burglary or theft that occurs in the house that’s insured, any valuable contents that are stolen, are covered by this type of policy
Contents insurance: When you take property insurance, you can also insure the contents of the house. This type of insurance protects the goods inside your home such as TV, refrigerator, jewelry, documents, portable equipment, etc.
Tenant’s insurance: A tenant residing in a building can wisely opt for insuring the contents of the house rather than the building structure. It is important to have this cover for as long as you reside there as a tenant.
Landlord’s insurance: As a homeowner, it is important to protect your property on the overall apartment and not just the structure or the contents, because the property is technically in your name.
The homeowners should also keep in mind, a few of the things that are usually not covered in the property insurance. Things such as willful destruction of the property, damages dues to regular wear & tear, money in the form of antiques or collectibles, to name a few.
At Pyramid Lifestyle, we ensure that every property you own is worth insuring and our team of expert financial advisors helps you get the right kind of property insurance. Be it for our residential projects, Atlante at Wakad or Pyramid County at Bhukum or our commercial project, Pyramid Axis at Baner, we ensure that every property you own lives up to its fullest potential and having property insurance is how you secure your investment. If you wish to know more about who we are and what we do, please visit www.pyramidlifestyle.com
