Do you own property? If you do, then, you should be reading about property insurance. Whether yours is a simple home or a rental place, it will do you a lot of good to know about property insurance. Property too needs to be insured and it is because of the many risks that may affect property. From natural disasters such as floods, thunderstorms, earthquakes to other disasters like fire, theft and many more, everyday, you stand the risk of losing your property investments unless you have invested in property insurance.
By definition, property insurance refers to a form of insurance that offers protection to buildings against forms of destruction. Many at times, the insurance also covers the contents of the buildings depending on the type of property insurance cover taken. It is for this reason that people should know the various types of property insurance.
Types of Property Insurance Plans
How will you know the type of property insurance cover that is best for you if you do not have the knowledge of the various types of property insurance plans available? It is for this reason that we list to you the various property insurance types and how they work. Here are the types of property insurance covers that you need to know:
1. Home Insurance Plan
Also known as multiple line insurance, the home insurance plan covers property and liability through the payment of a single premium for all manner of risks. The home insurance is used for the coverage of private homes.
2. Aircraft Insurance Plan
With the increase of air accidents, the possibility of aircrafts crashing into your property and causing damage to your property and even death cannot be brushed away. As such, the aircraft insurance plan will cover for the damages caused should an air accident destroy your property.
3. Fire Insurance Plan
This type of insurance plan covers any damages and losses caused by a fire breakout. During fire, you may lose some or all of your property and costing will have to be done so that compensation be determined and made as per the premiums.
4. Replacement Cost Coverage
In the replacement cost coverage insurance plan, the cost of your property is paid despite inflation. It simply means that your property is restored to its current market value regardless of price fluctuations that may have taken place over the years. As such, replacement cost insurance plan ensures that you spent less money in paying premiums yesterday to get the new property today when your property was destroyed.
5. Civil Commotion Insurance
Riots are often unexpected and amazingly, the extent to which rioters destroy property is at times beyond comprehension. For this reason, the need to obtain insurance against riots and any other forms of civil commotions. The insurance policy will cover against property destruction in violent disturbance.
6. Explosion Insurance Plan
This type of insurance coverage is meant to cover property against loss caused by any form of explosions.
7. Theft Insurance Plan
Property stands a risk of being plundered by thieves and theft insurance plan is the ultimate way to get compensation should thieves plunder property. Any damages arising from burglary will be covered with this insurance and any losses will be compensated.
8. Flood Insurance Plan
If you live in flood prone areas or next to large water bodies or high rainfall areas, it is advisable to secure your property with a flood insurance plan. This kind of coverage will ensure that your property is covered from damages that will be caused in the event of floods.
9. Earthquake Insurance
Earthquakes are unpredictable and very destructive especially to property. The best way you are ever going to feel that your property is secured is to get for your property earthquake insurance.
10. Machinery Insurance Plan
Property insurance goes beyond building to machinery and equipments and the machinery insurance plan is meant to cover machinery against breakdown and assist in their repairs. Also, some machinery are quite expensive and should they get destroyed or stolen, it would be a great loss to the owner. This insurance plan is meant to ensure that your machinery is recovered in the event of the occurrence of an insured risk.
11. Debris removal insurance
After a fire, a storm, an earthquake or a riot, a property may completely be destroyed and this will lead to debris which is expensive to clear. Because other insurance covers may only cover for the erection of a new building but not for the removal of debris, it is advisable to get this insurance cover so as to help cover the costs of removing debris in the face of a disaster.
12. Builders Risk Insurance Plan
The Builders risk insurance plan is meant to cover buildings that are under construction. This insurance plan covers for any losses that may be experienced while the building is under construction. For instance, the building may be taken down by a strong wind storm and this may need compensation.
Some insurance policies such as earthquake insurance, flood insurance, fire insurance are known as specialized insurance policies. Many of these policies will have a clear way on the premium payments, the extent of coverage and the compensation clauses.
How to Choose a Property Insurance Cover
Philadelphia property insurance covers are many and diverse and you can choose to use more than one type of property insurance. You should know the level of coverage an insurance company offers and how much compensation you will receive in the case the insured risk occurs. There are those insurance companies who will pay in cash while other policies state that the insurance company replaces the structure.
Tenants too have the chance to buy property insurance to protect their inventories against insurable risks. Before a tenant can think of taking insurance policy, he should ask his landlord about other insurance policies that the property already holds. This will ensure that you don’t insure against a risk that has already been insured.
Tenants should also have other insurance policies such as casualty insurance for the property in which they live in such that should a person get injured in their business premises, the insurance policy will cover them.