Property insurance can include various policies like homeowners’ insurance, renters’ insurance, earthquake insurance, and flood insurance. On claiming the property insurance, the insured person will get either reimbursement for the actual value of the damage or receive the cost of replacement to fix the damage.
What does a property insurance cover?
Property insurance usually covers selected weather-related adversities, damage caused by fire, smoke, hail, wind, snow, lightning, etc. Property insurance also provides protection against vandalism and theft to cover the structure and its contents. It also provides liability coverage in case of damage caused to any person other than the renter or property owner.
Basic property insurance policies usually do not cover any damage caused due to unforeseen events like Tsunami, floods, seeping groundwater, standing water, and other water sources. It does not cover the mold in case of an earthquake. Also, most property insurance policies do not cover circumstances like nuclear events, terrorism, and war.
There are three major types of property insurance coverages- replacement cost, actual cost value, and extended replacement costs.
Replacement cost – This type of coverage will protect the insurer by providing cost of repair or replacement of property and its contents at the same or equal value. The coverage is decided based on the cost of replacements and not the cost of the damaged items.
Actual cost value – This type of coverage pays the coverage amount to the owner or renter for the replacement cost of damaged items minus the depreciation. This means that the replacement coverage amount is calculated on its current value considering the usage for the number of years it has been in utility.
Extended replacement costs – This type of coverage pays cover for all the damage, even if it extends the coverage limit of your policy. However, this shouldn’t exceed 25% of the limit.
Why should you buy property insurance online?
The online shopping realm provides you the ease of buying anything and everything at the convenience of your home. Insurance is the rising trend in the online shopping realm because of the ease it provides by eliminating frequent visits to insurance providers. Adding to this, it also enables you to research and compare different policies.
Steps to buying property insurance online
- Click on the ‘Apply Online’ or ‘Buy Online’ button on the page of your selected property insurance policy.
- Fill the information asked by the insurance company or bank about the property to be insured. These details are usually about:
- Type of accommodation- rented or owned
- Required policy tenure
- Policy cover inclusions
- Details about the property like location, property’s age, type of home, the sum insured, construction/built area, etc.
- Details of the insured person like name, contact number, etc.
- Based on the information you fill; the website will estimate and tell you the exact cost of premium that you will be required to pay for the selected sum assured and tenure of the policy.
- Check and confirm the details. Then proceed to buy the selected property insurance online by making an online payment.