Property insurance is insurance that covers either property or liability. They are designed to cover material losses resulting from a loss.
The division of these insurances depends on the subject of insurance and the type of risk, for example, insurance of maritime or buildings against fire.
The subject of property insurance can be either a natural or legal person and its subject is the property rights and obligations of the insured person. The nature of the damage covered is always negative, and the damage itself – measurable in money. The sum insured is determined on the basis of the value of the insured object, while the benefit is paid in the form of compensation. Property policies are insurances taken out only on a short-term basis, i.e. for a period of up to 1 year.
In property insurance, coverage applies to:
property – and covers its loss or destruction
third party liability – covers damage caused to third parties
In case of occurrence of an accident provided for in the agreement, the insurance company is obliged to pay compensation.
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Types of property insurance
Property insurance can be divided into individual and corporate recipients.
These recipients are offered:
motor insurance products,
products for households
products for travellers
marine, aviation and railroad insurance products,
products for industrial companies,
products for farmers,
general liability insurance products,
financial insurance products.
Motor insurance products are addressed to individuals and corporations and offered as:
Casco (AC) – damage to the vehicle,
third party liability (OC) – civil liability of the vehicle owner or driver for damages to life, health and property of third parties
Assistance, which includes towing, costs of cassation, return from the scene of the accident, medical assistance, hospitalization, transportation of the injured.
Home insurance, i.e. property insurance, covers damage such as: damage to the building, destruction of household property, breaking windows, burglary, theft, inability to live due to fire, flood, etc., as well as third party liability in private life (e.g. neighbor’s flooding).
Travel insurance, on the other hand, is usually very broad.
It covers loss or destruction of baggage, consequential accidents, medical expenses, third party liability for damage to others.
Marine insurance products include: casco – the ship, cargo – damage to purchased or delivered goods, freight – the cost of transporting the cargo, third party – the liability of the shipowner due to his business.
Aviation insurance products are similar to marine and include carrier liability to passengers for damage on land, as well as liability of aircraft manufacturers, airports and airport operators.
Rail insurance products are offered to carriers and infrastructure owners for property damage to themselves, users and personal injury.
Products for industrial companies partly cover risks similar to domestic risks (natural disasters, theft, third party liability), but also include events such as sabotage, specific industry risks or equipment breakdown.
The offer for farmers includes protection against the effects of natural forces (drought, flood, hail), losses in crops and livestock, as well as mandatory third party liability and buildings insurance.
Third party liability products are prepared for various professional groups such as doctors, lawyers, investment advisors, entrepreneurs and natural persons.
The last group mentioned is financial insurance that protects receivables (bank loans, trade credits, leasing or installment payments). This type of product includes insurance against the loss of a regular source of income or profit, against extraordinary costs/expenses or business interruption.
The most common insurance policies include: Third Party Liability for motor vehicle owners (nearly half of all contracts signed), followed by policies for other property damage, consequences of the elements, land vehicle casco and farmers’ liability.
Property insurance is a protection in case of crisis situations. Their wide range allows you to protect yourself from the consequences of damage to a vehicle, property, travel or an individual. The conclusion of an insurance contract also allows for a certain degree of compensation for property losses.