In today’s world, repairing a property is cost-effective. So, having property insurance can cover you financially. It covers the losses caused by natural calamities, man-made disasters, theft, fire, burglary, etc.
There are several types of property insurance in India. If you want to insure your property, keep reading to learn more about them.
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Top 6 Property Insurance in India
Though the types of property insurance may vary depending on the insurance company you choose, here are the 6 basic insurance policies for property owners in India:
- Commercial Insurance
It is one of the common property insurances in India that most commercial property owners obtain. Retail stores, offices, factories, warehouses, eateries, etc., are commercial properties.
Commercial insurance helps company owners protect the working capital during commercial property damage. This is different from commercial general liability insurance, which only covers third-party liabilities of the company owners.
- Home Insurance
Home insurance is among the top-selling property insurance in India. Homeowners buy this insurance to protect their property against man-made or natural calamities, fire, theft, etc.
It will help cover the expenses incurred while repairing the property or additional spaces like a washroom, garage, shed, etc.
If you own residential properties like flats, villas, bungalows, apartments, etc., you can buy home insurance to protect your property.
- Renter’s Insurance
This insurance is almost similar to home insurance, the only difference being it protects the belongings of the tenants or renters in their rented house. Tenants can opt for renter’s insurance to shield valuables like furniture, jewellery, electronic appliances, clothes, etc.
So, if any of your belongings get stolen or damaged due to fire, earthquake, or any other calamities, you can claim the renter’s insurance to cover the loss.
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- Fire Property Insurance
As the name suggests, fire property insurance protects your property from a sudden fire breakout and associated risks. Your property may get damaged due to accidental fires such as implosion, explosions, lightning, etc.
In such cases, you can claim fire property insurance to protect your assets like furniture, buildings, and other belongings. Fire property insurance can also protect your property from damage caused by vehicle collisions, forest fires, missile testing operations, etc.
- Shop Insurance
Shop insurance covers the insured shop and the valuables inside the shop property. If the property of your shop gets damaged due to natural disasters like earthquakes, floods, fire, robbery, etc., you can claim shop insurance to cover the losses.
- Public Liability Insurance
This property insurance is a third-party insurance that covers the policyholder’s obligations towards the losses or damages of a third party. As per the Environment Protection Act of 1986, every company owner must opt for public liability property insurance to cover the losses caused to a third party in the company’s property.
So, if a customer faces any loss or damage in your commercial property, such as restaurants, cafes, or any other business organisation, you are liable to cover it.
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Eligibility Criteria to Buy Property Insurance in India
If you are opting for property insurance, check out the eligibility criteria to fulfil:
- The applicant must be an Indian resident between 18 and 60 years old.
- You must have a decent credit score above 750 to buy a property insurance.
- You should own a residential or commercial property.
- Property insurance is not applicable for land, plots, under-construction property or kutcha houses you own.
What Type of Coverage is Included in Property Insurance?
Property insurance provides the following three types of coverage:
- Option 1: It only covers the assets of your business property or home.
- Option 2: It covers both the assets of your home or commercial property and the building you own.
- Option 3: It covers the building only.
Thus, every property insurance provides different types of coverage benefits. So, you need to select property insurance as per the required coverage and type of property you own. Before buying a specific property insurance, it is essential to review its features and benefits carefully.
