What is Property Insurance?
If you own real estate, you need insurance at the very least in case of an accident that requires repairs. This is usually a condition of the mortgage, and if you are a landlord it is your responsibility, not the tenants. Although not mandatory, if you have your own home, it should be one of your top priorities.
What is Property Insurance?
This basic concept contains two fundamentally different insurances:
- Property insurance – for built-in and fitted premises, such as kitchen and bathroom;
- Property insurance – for things you keep in your home, such as furniture, TVs, personal effects and some floor coverings, including carpets.
You can buy both types of insurance separately, but you could also buy them as one policy from one insurance company, which is the usual practice.
What do we need to know?
This policy covers damage to the home’s structures, such as walls, floors and ceilings. Usually this also includes the built-in premises. Therefore, if you have installed and furnished a bathroom or a kitchen, it is certainly desirable that the insurance covers possible repairs to each of them.
Because the insurance covers the repair or rebuilding of the home, if it becomes necessary. Different policies vary in what they list as property insured. But generally speaking, you can consider these:
- fallen trees;
- fire, smoke, explosions;
- collision with cars and trucks;
- damage due to leaking pipes;
- oil leakage from the heating system;
- natural disasters such as storms and floods.
Depending on the type of policy, other structures such as garages, outbuildings and parking spaces may also be insured.
What does this insurance NOT cover?
You will not get cover for wear and tear of the property, each policy contains its own exclusions for which you cannot claim. In general, you won’t get coverage for:
- leaking gutters;
- some pests (insects, birds);
- frostbite (unless due to a burst pipe).
In normal circumstances, you cannot make a claim for loss or damage that occurs while your property is left unattended for more than 30 or 60 days. However, many insurers would be willing to let you arrange coverage if you let them know in advance. On the other hand, damage caused by natural phenomena, such as a storm, is unlikely to be covered. Exclusions vary from policy to policy, so read carefully.
Is such insurance necessary?
If you own your own home or rent one out, then you better consider buying insurance. Conversely, if you are a tenant of real estate, it is your landlord’s duty to take out such insurance. If you are renting in a single owner building, it is always an option to discuss making and purchasing insurance together with the landlord and other tenants. An insurance broker would be best to help you with this.