Property insurance is a group of insurances that are designed to protect the finances of the insured customer. There are a wide variety of insurance solutions in this group, and each is designed to work in such a way that in the event of an insurance event, the only cost to the customer is the insurance premium. The rest should be covered by the insurance money.
As it was mentioned, the property insurance is a type of insurance that includes policies concerning different spheres of life of the insured persons, i.e. personal insurance. Thus, the group of property insurances also includes motor vehicle insurances, because they de facto secure the property of the insured. Thanks to the third party insurance policy, the insured does not have to cover the costs of indemnity in case someone suffers a property or personal damage because of his fault. On the other hand, if it is his car that suffers damage during the event, the AC policy will cover the costs related to repairing such a car. In this group there are also tourist insurances. And although they concern events connected with life and health risks, and to a much lesser extent property (loss of luggage), they belong to the group of property insurance, because they secure the client’s property. The costs of medical treatment or rescue operation are borne by the person injured in the event. Often, these costs reach several tens or even hundreds of thousands. Few people can afford such fees. With a travel insurance policy, these costs can be covered by the insurance money. That is why it is property insurance. It protects against loss of property, which should be spent on treatment. And the last group of insurances are housing policies. This is already a classic form of property insurance, because it is the property that is protected here. A property insurance policy, which protects the property and the household movables in it, is usually concluded for the value of the protected property. This means that in case of loss, if it turns out that the insured lost his property due to fire or burglary, the insurance company is obliged to pay him such money that will allow him to compensate or repair the damage.
Importance of property insurance
Anyone who achieves some level of wealth, usually achieves it through hard work and sacrifice. The material status gained is the result of tremendous sacrifice. So it is hard to imagine losing it all in an instant. It is even harder to imagine regaining it in an equally short period of time. That is why property insurance is so important. Purchased car for tens of thousands may be stolen or destroyed by another driver. Insurance policy will make it possible to recover it in a short time, to buy it back. This is especially important when it was bought on credit. Installments have to be paid, and the bank is not interested in the fact that the client has lost an item for which he has not even managed to pay yet. The same is true for an apartment, only the loan is much larger. The point is that if you lose your apartment because of a fire or other fortuitous event, you have nowhere to live, and you can’t afford to buy another apartment, because the credit for the first one, which was destroyed, hasn’t been repaid yet. Thanks to the policy, you can receive the equivalent of the lost apartment and buy a new one in its place or renovate the destroyed one, if it is suitable for renovation. Property insurance is therefore very important and very useful. They allow you to protect your hard-won possessions. They give a sense of security and allow you to function in peace.