6 Reasons Why Property Insurance is Important for You
Posted At November 2nd, 2018
Property insurance is the type of loss insurance that protects your property or assets in the form of house (the building) and its contents. This type of insurance is divided into two categories; fire insurance and all risks property insurance.
A house along with its contents is a valuable property with the largest financial value. Such assets must get maximum protection against all kinds of risk of loss caused by damages, losses, or other disturbances.
Failure in setting up protection for your valuable assets can result in a loss that can seriously worsen your financial situation. Even more so if you do not have a sufficiently large amount of emergency backup fund.
The followings are some items covered by a property insurance, both in the main and additional benefits.
- Jewelries and other valuable items
- Household equipment and furnishings such as couch, table, television, air conditioner, DVD player, or other electronic devices
- Third party legal liability
- Protection for personal accident caused by damage to the building incidents
- Other additional benefits.
6 Reasons Why Property Insurance is Important
There are at least six (6) obvious reasons why property insurance is extremely important for you to have. Below are the elaborations.
1. It Protects the House and Its Contents
The main function of property insurance is to offer protection for your house and its contents.
The protection for your property covers against all kinds of risk of damages caused by fire, natural disaster, or other factors. It also covers the risk of loss due to theft or other criminal acts, as well as other kinds of risk of disturbances.
2. It Offers a Sense of Safety
The existence of property insurance protection against the uncertain risks of loss such as fire, natural disaster, theft, and so on surely gives you a peace of mind and confidence as the owner of the assets.
Should those risks occur and you suffer losses, the insurance company will surely give the appropriate compensation.
3. It Has a Low Cost
For the Indonesian Fire Standard Policy, the average premium value applied is very low, which is about 0.50/00 from the total assets value.
For example, if you own a house along with its contents with a total value of IDR 1 billion, then the premium you need to pay is 0.50/00 times 1,000,000,000, that is IDR 500,000 per year.
Pay attention to the ratio between the value of coverage and the value of premium. You only need to pay a very low amount of premium in order to get maximum protection for your highly valued property.
Therefore, with just a small cost, your property assets are well protected.
4. It Compensates Damaged or Loss of Building or Property
Property insurance gives compensation for any damage or loss of your property. The term for compensation is that the loss is not caused by your own negligence.
5. It Keeps Financial Disturbances Away
Imagine if your entire house building and its contents are burned down. You will surely suffer a huge amount of financial loss. The repair and replacement costs for all those properties are surely substantial.
Property insurance gives compensation for that loss, so that your financial condition remains protected.
6. It Covers a Temporary Place to Stay
Should the risk of losses occur and cause you to lose your home, the property insurance can provide you with a temporary place to stay for free or compensate you for the temporary place’s rental fee.
Reduce the Risks
If you already know the reasons why property insurance is important, why are you still taking the risk of leaving your property without protection?
Even though those risk of losses might not happen to your properties, having a property insurance would successfully minimalize the impact of those risks.
You can then have a peaceful and pleasant life.
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