What are the different Types of Property Insurance Policies Available in India?

As an umbrella policy, property insurance comprises of various insurance policies, which you can buy as per your requirements. Here are some of the different types of property insurance policies available in India-

1. Office insurance 

Are you successfully running a business? Surely, you must be very proud of what you have created which is the result of our efforts. However, what if any misfortune happens tomorrow, your financial dreams could be shattered. Fret not! With office insurance policy, you can secure your office premises. It is an important property insurance policy which offers complete coverage to your office.

An office insurance policy offers the following coverages –

  • Protection from a wide set of perils like flood, lightning, riots, strikes, cyclone, storm, etc.
  • Protect against infidelity/dishonesty of employees
  • Secure the content against burglary, fire, etc.
  • Offer personal accident cover for the owner

Read More: Who Should Buy Fire Insurance Policy?

Case: Mr. Rajan Shah is a happy man. After years of hard work, he has started his business venture in Delhi. While, he is busy in beautifying the interiors of his office, he also plans to buy an office insurance policy so that any unexpected situation doesn’t derail the growth of his business. In addition to offering coverage against various perils, like strikes, fire, earthquake, etc.; the policy will also cover office content against burglary. Rajan is also planning to buy personal accident cover so that in case he meets with an accident, he or his family gets some financial assistance from the insurance company.

2. Construction all risk –

As a contractor, it is necessary for you to honor the deadline. However, a construction site is susceptible to various losses and damages, like, theft, damage, etc. To get coverage against such losses, it is inevitable to buy a construction all risk insurance policy which is specifically designed to cover various civil engineering projects like buildings, flyovers, airports, sewage treatment plants, etc.

A Construction all risk insurance policy covers the following –

  • Fire and lightning
  • Collapse, collision
  • Theft & burglary
  • Water damage, storm, flood
  • Landslide, Rockslide

Case: R.J Real Estate is a leading name in the realty sector. Though, the company always follows strict global norms to ensure the complete safety of its project, during its last residential project, the company had to incur major financial losses when heavy rainfall damaged its construction site. Luckily, the company had a construction all risk insurance policy and immediately after the loss, it informed the insurance company who sent a surveyor to inspect the damaged site. After carefully reviewing all the details, the insurer settled the claim and curtailed the financial losses to some extent.

3. Engineering all risk –

Projects like storage of equipments, expanding or moving a facility, etc.; will leave your company open to significant risks. It makes sense to go with an engineering all risk insurance policy which will offer protection against various kinds of risks.

An Engineering all risk insurance policy offers the following coverages –

  • Covers all types of risks associated with storage, assembly and testing of plant and machinery
  • Covers incepts from the time the first consignment unloads at the project site till it terminates on completion of testing or handover of the project to the principal

Read More: What is covered under Engineering All Risk Insurance?

Case: R.J Infrastructure Pvt. Ltd. is responsible for various civil engineering projects in India. Many of its projects require heavy investment and working under water. The company has purchased engineering all risk insurance policy to get coverage in case something mishap arises. The policy covers all risks that may arise due to storage and testing of plant & machinery. Last month, an accident happened at one of its site during assembly of machinery. The company informed the insurer who after carefully reviewing the situation settled the claim.

4. Factory and warehouse insurance –

Any unforeseen event can disrupt the smooth functioning of the factory and warehouse. If such is the case, it makes complete sense to go with a factory and warehouse insurance, which is an important add-on for an industrial set-up like which is involved in the business activities like manufacturing, storage of goods, etc.

A factory and warehouse insurance policy offers the following coverages –

  • Covers unoccupied or vacant warehouse from accidental damages
  • Offers comprehensive cover that comprises of content insurance, money insurance, stock insurance, public liability insurance, etc.

Case: Recognised as one of the leading clothing mills, R.J Mills is situated in Pune and has its offices spread throughout India. As the company also exports to eastern countries, it has its warehouses situated near the coastline. The mill owner should go for factory and warehouse insurance to cover the mill and warehouse from various losses or damages. Moreover, the mill owner has also purchased the unoccupied building insurance to cover stocks and assets in their absence.

5. Motor fleet insurance –

With an expansion in business, companies tend to purchase more vehicles to meet their burgeoning needs. Instead of buying separate motor fleet insurance for each vehicle, it makes sense to go with a motor fleet insurance, which covers four or more vehicles under one insurance plan. It means, by paying insurance premium only for once, the company can cover all its vehicles under one plan. It is a crucial part of a property insurance policy which ensures the complete coverage for your vehicles under one head.

A motor fleet insurance policy offers the following coverages –

  • Covers losses or damages to vehicles by fire, burglary, accident, or any other unexpected causes
  • Covers third-party injury, death or damage caused by your vehicle

Case: T.S Engineering has a long fleet of trucks for ensuring the safe transportation of goods throughout the country. Recently, the company has purchased a motor fleet insurance policy which covers all its vehicles against both natural and man-made risks, like fire, burglary, accident, flood, theft, etc. Moreover, instead of buying a separate insurance policy, T.S Engineering has bought a comprehensive motor fleet insurance, which covers all its vehicles under one policy.

Read More: How to file a claim under Motor Fleet Insurance?

6. Art insurance –

Indeed, any artwork is valuable, and therefore, if you are a dealer of fine art, musical instruments, statues, sculptures, and other precious collectibles, it is essential to get these items insured. An art insurance is a right way to secure your valuable items.

An art insurance policy covers the following –

  • Fine Art
  • Books
  • Pictures/Paintings
  • Antique and period furniture
  • Musical Instruments
  • Statues and sculptures

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