Scribd
Upload
38 views3 pages

Introduction 11

Insurance is a social mechanism where individuals pool resources to reduce the risk of losses to property and life. Property insurance specifically protects against risks to property such as fire, theft, natural disasters, and more. There are several types of property insurance including home insurance, which covers both property and liability, fire insurance, flood insurance, earthquake insurance, and boiler insurance, each covering different specific risks. It's important to carefully select the right type of property insurance policy to ensure full coverage of one's property.

Uploaded by

Patricia Joseph
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
38 views3 pages

Introduction 11

Insurance is a social mechanism where individuals pool resources to reduce the risk of losses to property and life. Property insurance specifically protects against risks to property such as fire, theft, natural disasters, and more. There are several types of property insurance including home insurance, which covers both property and liability, fire insurance, flood insurance, earthquake insurance, and boiler insurance, each covering different specific risks. It's important to carefully select the right type of property insurance policy to ensure full coverage of one's property.

Uploaded by

Patricia Joseph
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

INTRODUCTION : Insurance may be described as a social device to reduce o r eliminate risk of loss to life and property.

Under the plan of insurance,a large number of people associate themselves by sharing risksattached to individuals. The risks which can be insured a g a i n s t , include fire, the perils of sea, death and accidents and burglary. Anyr i s k c o n t i n g e n t u p o n t h e s e , m a y b e i n s u r e d a g a i n s t a t a p r e m i u m commensurate with the risk involved. Thus collective bearing of risk isinsurance. DEFINITION : General definition: In the words of John Magee, Insurance is a plan by which l a r g e number of people associate themselves and transfer to the shouldersof all, risks that attach to individuals. Property insurance offers security and financial aid against any kind of property risks like natural disaster, theft and fire. The property contents are also covered under such insurance. PROPERTY INSURANCE :Why do you need a property insurance? Property insurance is basically required for the financial security it provides to the property in case of any loss suffered. The insurance pays off for the losses caused by any unfortunate disaster or for the particular cases listed on the policy. Such an insurance also covers up for the accommodation at the time of your property being renovated. Lastly, such kind of insurance also offers coverage for any kind of unintentional loss caused by you on someone else's property.

Types of property insurance Property insurance includes several forms of insurance like: Earthquake Insurance This is a kind of property insurance that compensates the insurer in case his property faces any kind of loss due to earthquake, but it is to be kept in mid that homeowners insurance does not provide security in case of damages caused by earthquake. Such type of insurance coverage comes with high deductible rates that gains if the property gets fully damaged and does not help much in case of small losses. Fire Insurance Fire insurance also falls under the forms of property insurance that offers protection to office, residences, hospitals, shops, industries and corporate offices. Damages caused by explosion, strike, riot, terrorist acts, landslide burst etc are all covered under this and damages caused by war, any electrical equipment or temperature change are not covered under such an insurance policy. Home Insurance Home insurance is the kind of property insurance that offers insurance coverage to the homes. This insurance also gives liability protection (for accidents occurring inside the home) and also property protection at the same time for a single premium. This insurance covers the home, its contents and personal possession. Flood Insurance This is also another type of property insurance that offers insurance coverage against any kind of damages suffered by the property in an event of a flood. Such type of an insurance is not very common in India as it is often covered under the home insurance and is not needed to separately adopt a policy as such. Boiler Insurance Boiler insurance is that form of property insurance that compensates for damages

suffered by your home boiler or any kind of electrical equipment of your house with some exceptions attached to it. Methods to get property insurance There are mainly two ways to gain property insurance and they are Open Perils - Property insured through open peril policy offers coverage for all sorts of loss resulted from floods, act of terrorism, earthquakes and war. Named Perils - Property insured through named peril policy offers coverage for all sorts of loss that are particularly listed in the policy documents. The most common named includes range of loss cused by explosion, fire, theft and lightning. Tip for you Full coverage of property is only possible through the best suited Insurance cover, so you must choose very wisely and one thing that should always kept into mind is that high deductible rates always gets low premium.

You might also like