Property Insurance
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Property insurance is the kind of insurance that protects physical goods and equipment of a business or home against any loss. It covers the risk of all the damages caused by fire, theft, and wind; it also covers structures and its contents.

This kind of insurance also have exclusions that it do not cover  in it policy,  property insurance do not cover damages caused as a result of earthquakes, water seepage, tsunamis, cyclones, flood e.t.c also  it do not cover valuables such as jewelry and artworks.

The only obvious disadvantage this kind of insurance has is the high cost of maintenance.

Property insurance can also cover a lot through a single policy because it is an umbrella that covers a lot under it, this ranges from; home owners policy, flood insurance, shopkeeper’s policy office package policy etc such policies that will cover personal liabilities instead of just covering the risk of the property.


Property insurance is very crucial for everyone to purchase, but it is advisable for business owners having a reasonable number of staff working for them to have adequate property and casualty insurance.

This is important especially in cases of a damage or loss the property insurance will protect the business. In the light of the above explanations other persons/ people that needs a property insurance coverage includes the following;

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  1. Large Corporations: Large corporations just as the name implies, due to its size usually have a higher magnitude of damage whenever there is a challenge, but with a property insurance coverage the company will have little or nothing to worry about, but when the reverse is the case it might end up have an unredeemable damage on the business.
  • Home Based Business: Some person may decide to start up an in-house business or start up their own small business enterprise in their homes, the kind of business that might have close to 2-3 employees that carry out their daily task in the employers home, to get a property insurance coverage is a can’t do without for such a business because casualties are bound to happen and in cases where an employee is injured it can also protect such a person.
  • Small Business Owners: Small business owners seem to be the main set of people that needs a property insurance coverage due to the nature of their business and their not so strong financial capability.

They stand the chances to benefit more from this kind of coverage, as it will go a long way in helping them to cushion the effect of the challenges that may arise while running their business, issues like lawsuit claims, medical bills, damage and repair, and cost incurred on their own premises.


  1. Replacement Of Cost: This kind of   property coverage is based more on replacement rather than giving the cash value of the item.
  • Actual Cash Value: This the opposite of the replacement cost, here the policy holder gets the value of the item in cash and the said item will not be replaced with a new one.
  • Extended Replacement Cost: This will pay more than the coverage limit it the cost of the construction has gone up, the insurance company usually gives this kind of benefit  on a given situation or event.


In property insurance, when an event of loss or damage occurs, there a laid down process that an insured needs to follow properly in other to lay claims on his/her due dividends; The includes the following;

  1. Notify the loss
  2. A report to the police
  3. Collection of evidence
  4. Claim to the third party
  5. Repair and replacement of the property
  6. Assessment of the damages
  7. Final preparation of the claim documents                                                              

Notify The Loss: This is the first stage of the of the claim process, the insured needs to bring formerly to the knowledge of the insurer that there is a case of loss or damage.

This stage is very vital because it contains a well detailed explanation of what happened. Not to be left out, the notification should be timely because if delayed it will make the whole process to be a rigorous one.

  • A Police Report: In laying a claim, it important to also carry along the relevant law authorities especially in cases of burglary and theft. A case should be filed in the nearest police station; the report will serve as evidence when the need arises, as this will go a long way in serving as a backup and solidify the credibility of whatever case the insurer presents.
  • Collection Of Evidence: The evidence is the life wire of the whole claim process, without presenting an evidence, it will be hard for the insurance company to believe the insured is saying, so it is advisable that much evidence should be gathered as this will not only convince that there was actually a loss it will go a long way in aiding believability.

Before any form of repair work will be carried out, the insured should take pictures, keep some remnants of the damaged equipments (debris) e.t.c so that if there is any future need for an assessment the outcome will align with whatever reports or explanation the insure has earlier laid.

  • Claim To The Third Party: When is the third party that caused the damage, the insurer should send a claim to the third party for reimbursement as well as a notification to the insurance company.
  • Repairs And Replacement Of The Property: This stage the all the damaged equipments are being put back in shape and the ones that badly damaged will be replaced. The insurer will also notify the insurance company with the estimated quotation of the cost of the whole expenses.
  • Assessment Of The Damage: a survey will be carried out to assess the level of the damage that happen during the event of loss, in other to estimate the total loss, the person carrying out the assessment is known as a ‘Claim adjustor’.
  • Final Preparation Of The Claim Documents: This the final stage of a claim process in property insurance. Here, the insured is expected to prepare and present the following documents; notice of loss sent to the insurance company, report of an accident with picture evidence, a copy of the police report, claim note sent to the other parties if required and the cost of damages/loss with all the relevant documents such as invoices, receipts, purchase bills of machinery etc.

After the insured has undergone all these processes if he is successful the insurer will pay totally all the due dividends, but where he fails the reverse will be the case, irregularities in the cause of the whole process can also mar the  possibilities of getting a compensation.    


Property insurance is advisable for anyone who owns a property, either big or small because its advantages outweigh the disadvantages.

  1. It covers a wide range of significant damages, protecting a structure and its content.
  2.  Property insurance offers a sense of safety.
  3. It compensates damaged a building.
  4. It keeps financial disturbances away and reduces risk.


  1. The owner of the property insured is the only one to be compensated. It cannot be assigned to a next of kin.
  2. The risk insured is uncertain it may not occur.
  3. There is a maximum limit to the amount of compensation.
  4. The insured must be in a position to suffer financial loss in the event of the risk while trying to claim his compensation.
  5. It is a short term contract, the insurance ends after a period of time.
  6. It is a contract of indemnity, the owner of the insured property is compensated for the loss of the property upon occurrence of risk.
  7. The value of the premium is dependent on the degree of risk.


The property insurance contract is the protection that safeguards the actual products and the gear of the business or home against any misfortune from burglary, fire, and some other risks.

It tends to be an all-risk coverage policy that gives insurance against every one of the dangers. Or on the other hand can named-risk coverage strategy that gives insurance against just those hazards, determined in the arrangement record.

Considering the property insurance as an umbrella or bundle cover that offers a blend of covers through a single contract.

It might incorporate the mortgage holder’s policy, leaseholder’s arrangement, flood insurance, retailer’s contract, office bundle contract, and earthquake protection policy.

Such approaches rather than simply covering the risk of the property could likewise incorporate a portion of the individual liabilities too.

For the most part, the property insurance contract covers the dangers of the relative multitude of harms brought about by fire, robbery, wind, smoke, snow, lightning, and so on.

Be that as it may, the property insurance covers no harms, made by water due flooding, water drainage, standing water, torrents, typhoons, and so on. A portion of the property insurance covers likewise avoid the misfortunes because of quakes, molds, and the demonstrations of war like psychological oppression etc.

Instance of This Type Of Insurance

The evening of 14th April 2021, a sudden fire ejected in the home of Mr. and Mrs. Gray and smoke-topped off the entire house; the fire spread so rapidly that nothing was able to use to answer for, to limit the damages and the entire house burned to the ground.

The beneficial thing is nobody was harmed, and the main misfortune was the property. Fortunately, Mr. and Mrs. Gray had a home insurance contract.

They recorded their case with the insurance agency and presented all the important documentation. Since the house was past repairable circumstances and expects to build again from the beginning. They likewise got an expected statement for remaking the house once more.

The insurance agency delegated a case agent to survey the case which, after the site visits, gathering essential proof, and counseling the specialists concluded how much a case at $10,000,000 ought to be paid to the Grays’. That is roughly 85% of the complete remaking cost.

In this manner, assuming that there had been no protection cover for the house, the Grays would need to carry the whole expense of remaking out of their own pockets.

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