What is property insurance?
Property insurance can be divided into property, motor or travel insurance. Each policy must contain basic information about the object to be insured, the scope of insurance, the upper limit of the insurance company’s liability, and information on situations when liability is excluded.
Property insurance can be divided into property, motor or travel insurance. Each policy must contain basic information about the object insured, the scope of insurance, the upper limit of the insurance company’s liability, and information on situations when liability will be excluded.
Property insurance is most often associated with insurance of apartments and detached houses. However, its scope is much wider – it also includes motor insurance and even travel insurance. Property insurance allows to protect acquired goods, real estates, valuable objects. Who benefits from it most often? For whom is the property insurance designed? How much does the policy cost?
Property insurance is a type of insurance that covers property or liability. The main types of property insurance are social and business. They may also be called damage insurance, as their purpose is to compensate for the consequences of fortuitous events that have caused losses of a property nature. The object protected by this type of policy can be anything that is not against the law and can be valued in money.
Property insurance can be divided into property, motor or travel insurance. Each policy must contain basic information about the object to be protected, the scope of insurance, the upper limit of the insurance company’s liability, and information on situations when liability will be excluded. Property insurance may apply to individual customers or companies and entrepreneurs.
The most well-known and widespread insurances are:
Third party liability – covers the insured’s liability for damage caused to third parties,
Transport and motor vehicle insurance – applies to transported property and means of transport,
Insurance against random events – covers damage to property caused by fire, flood, hurricane, avalanche, other natural disasters,
Property theft insurance – covers damage to property owned by the insured.
Property insurance is also useful when traveling, protects luggage, or valuable electronic equipment.
Property insurance vs. personal insurance
Property insurance differs from personal insurance in the subject to be protected. In the first case it will be property, but also civil liability. Thus, property insurance covers a house, car, third party liability, as well as farms. The policy is to protect against theft, damage or total destruction. On the other hand, liability insurance is supposed to protect the insured if he or she causes some damage.
Personal insurance covers accidents of sudden death or bodily injury, or life insurance for individuals. This means that the subject of protection in this case is the life and health of a person – it applies only to private individuals. This type of insurance also covers incapacity to work. What else differs property insurance from personal insurance? The duration of the policy – in the first case it is usually one year, in the second even tens of years.
Property insurance – for whom?
Protection of property is an issue that should interest everyone. Nevertheless, the property insurance is not obligatory. You cannot resign only from MTPL, farmers’ MTPL or insurance of farm buildings (it is necessary to protect them against random events). In the case of the property insurance, it is necessary to purchase a suitable policy in the event that the total area of the farm exceeds 1 hectare.
It is very often assumed that mortgage insurance belongs to the compulsory insurance. This is a misconception, as the bank cannot impose insurance products on its customers. On the other hand, the bank has every right to make the granting of a loan conditional on the purchase of a policy. Property insurance of a house or apartment depends only on the owner – however, it is always worth considering such a possibility. Other voluntary insurances include life insurance, health and accident insurance or AC (Autocasco).