All You Need to Know About Property Insurance
Sep 20, 2017 Home Trading Steps
What is Property Insurance?
Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance.
When you buy a property you have thought that buying insurance is an extra burden and most likely it would not solve any purpose. So this is the right time to rethink as your property like all your dear belongings needs a protection against unseemly situations which makes crucial for an insurance to opt for.
Basically, the property can be insured in two ways—open perils and named perils.
a) Open perils cover all the causes of loss not specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism, and war.
b) Named perils require the actual cause of loss to be listed in the policy for insurance to be provided. The more common named perils include such damage-causing events as fire, lightning, explosion, and theft.
How to fix the fix the insurance amount?
It can be estimated primarily by two methods—one by checking the existing market value of the property and second by using the reinstatement value. Under the first circumstance, depreciation of value is levied on the asset depending on the age of the property in case any damage. In such cases, the insured amount may not be sufficient to buy a replacement. In the second case, the insurer will pay the cost of the replacement and to claim the amount the damaged property must be repaired first.
Responsibilities as a buyer of Insurance:
Every buyer must be extra vigilant and take precautionary measure about the safety of the property. You must keep in mind that you will have to prove it to the insurer that you put sufficient effort to save the property while a misfortune struck. And in case of the insurer is not satisfied with the same then settling the claim might be tough.
In case of any mishappening inform the insurer immediately and if the surveyor arrival is delayed then take pictures of the scene which would work as evidence. Extend your full cooperation when the surveyor is there, mention all the losses and submit all required documents.
Claim delays by the insurer:
If there is damage to your property and the claim has been filed with the insurance company and there is lack of response from the company you must remember the below points:
a) As per rule, the insurer has to acknowledge your complaint within 3 days and resolve it next 15 days.
b) A surveyor from the insurance has to give his report within 30 days of his appointment until unless he applies for an extension.
c) The extension cannot be stretched for more than 6 months from the date of his appointment.
d) In case of delay of payment to the insured party due to the failure of the surveyor’s report the insurer is liable to pay interest at a rate of two percent above the bank rate.
e) In case of disappointment with the company, you can raise the issue with the Insurance Regulatory and Development
Authority of India (IRDAI).
f) You may log on to www.igms.irda.gov.in to file your complaint. There are no charges for registering your complaints with the IRDAI.
In case you are dissatisfied with a company, you have the option to raise the issue to the sector watchdog, the Insurance Regulatory and Development Authority of India (IRDAI).
Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance.
When you buy a property you have thought that buying insurance is an extra burden and most likely it would not solve any purpose. So this is the right time to rethink as your property like all your dear belongings needs a protection against unseemly situations which makes crucial for an insurance to opt for.
Basically, the property can be insured in two ways—open perils and named perils.
a) Open perils cover all the causes of loss not specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism, and war.
b) Named perils require the actual cause of loss to be listed in the policy for insurance to be provided. The more common named perils include such damage-causing events as fire, lightning, explosion, and theft.
How to fix the fix the insurance amount?
It can be estimated primarily by two methods—one by checking the existing market value of the property and second by using the reinstatement value. Under the first circumstance, depreciation of value is levied on the asset depending on the age of the property in case any damage. In such cases, the insured amount may not be sufficient to buy a replacement. In the second case, the insurer will pay the cost of the replacement and to claim the amount the damaged property must be repaired first.
Responsibilities as a buyer of Insurance:
Every buyer must be extra vigilant and take precautionary measure about the safety of the property. You must keep in mind that you will have to prove it to the insurer that you put sufficient effort to save the property while a misfortune struck. And in case of the insurer is not satisfied with the same then settling the claim might be tough.
In case of any mishappening inform the insurer immediately and if the surveyor arrival is delayed then take pictures of the scene which would work as evidence. Extend your full cooperation when the surveyor is there, mention all the losses and submit all required documents.
Claim delays by the insurer:
If there is damage to your property and the claim has been filed with the insurance company and there is lack of response from the company you must remember the below points:
a) As per rule, the insurer has to acknowledge your complaint within 3 days and resolve it next 15 days.
b) A surveyor from the insurance has to give his report within 30 days of his appointment until unless he applies for an extension.
c) The extension cannot be stretched for more than 6 months from the date of his appointment.
d) In case of delay of payment to the insured party due to the failure of the surveyor’s report the insurer is liable to pay interest at a rate of two percent above the bank rate.
e) In case of disappointment with the company, you can raise the issue with the Insurance Regulatory and Development
Authority of India (IRDAI).
f) You may log on to www.igms.irda.gov.in to file your complaint. There are no charges for registering your complaints with the IRDAI.
In case you are dissatisfied with a company, you have the option to raise the issue to the sector watchdog, the Insurance Regulatory and Development Authority of India (IRDAI).
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