Property Insurance

A commercial property insurance policy is a personalized plan designed to cover for all damages caused to your property. It covers your property and the content from natural calamities, thefts, accidental damages, etc. Commercial property insurance policy is highly recommended as it safeguards your finances from unforeseen losses due to various risks associated with your property/premise.

It is necessary to buy a property insurance to avoid the financial burden that may arise due to any mishap to your home or property.

• A property insurance covers for both the structure as well as the contents of the manufacturing plant, warehouse and office
• Common risks such as fire, riot, theft or natural calamities such as storm, flood and earthquake are covered
• Property insurance can cover vacant premises as well when production or usage is suspended. This is known as silent risk
• Such an insurance covers both partial as well as total loss. Policy can be customized to provide for re-instatement cost of the asset
• The cost of a property insurance is a miniscule amount, less than 0.5% of the asset value. So, this can be absorbed as an operational cost whereas an uninsured loss would lead to significant capital erosion.

There could be broad functions of property insurance.

• Own material damage: This part would cover losses to your assets for the specified risks. In case of damage, policy will pay for repair or replacement.
• Loss of profit: For the duration for which the assets are repaired or replaced, the factory may have to be shut down. This policy would then indemnify you for the loss of gross profit and standing expenses during such period.
• Third party loss: In case of any damage to a third-party property and bodily injury due to an accident at your premises, the policy would pay for your legal liabilities.

We have personalized commercial property insurance plans for all your needs. The various types of property insurance that we offer are:

• Art Insurance
• Contractors All Risk Insurance Policy
• Engineering All Risk Insurance
• Factory & Warehouse Insurance
• Motor Fleet Insurance
• Office Insurance
• Property & Equipment Insurance for medical equipment

A property insurance has several features. Some of the prominent ones are:

• Re-instatement clause: the re-instatement clause works on principle of indemnity. This essentially means that the damaged property or asset can only be replaced with a new asset of the same kind, type and specifications.
• Option to buy add-on coverage: most property insurance policies cover a few specified perils. It is possible to enhance the coverage by choosing add-ons.
• Option to buy supplementary all-risk plans: Apart from the standard fire and special peril insurance, several supplementary plans exist such as: machinery breakdown, portable equipment insurance, electronic equipment insurance, etc.

• Named perils: the 12 perils of standard fire insurance are all covered - fire, lightening, explosion/implosion, aircraft damage, riot/strike/malicious damage, storm/cyclone/typhoon/flood, impact damage, subsidence/landslides, bursting of water tanks/apparatus/pipes, missile testing operation, leakage from automatic sprinkler installations and bush fire.
• Commonly used add-on: earthquake, impact damage due to own vehicles, forest fire, etc. are covered
• Commonly added clauses: re-instatement value, local authorities’ clause, designation of property, escalation clause and omission to insured are the added clauses for benefitting the insured.

Below list is covered under a property insurance policy:

• Structure of the property
• Stocks
• Plant and machinery
• Furniture
• Furnishing items
• Valuable or expensive items
• Precious gems and jewelry
• Electronic goods

Note: This is not an exhaustive list. Your policy document will have details of all the items covered under your property insurance policy.

Below are some of the exclusions under a property insurance policy:

• Proven willful loss or damage to property or commodities
• Loss or damage due to wear and tear or depreciation
• Loss due to war
• Loss or damage to electronic equipment caused due to excessive use
• Pre-existing damages

Note: This is not an exhaustive list. Your policy document will have details of all the exclusions that are part of your property insurance policy.

Below steps must be followed to make a claim for the property insurance:

• Inform the insurer immediate about the damage caused along with a rough estimate of the damaged valuables by filling a duly signed claim form. Do not undertake the repair on your own at this stage.
• A surveyor is appointed to scrutinize the damage and provide a report.
• Submit original documents as required by the insurance company.
• After a go ahead from the insurance company, you can carry on your repair work and claim for the expenditure within the limits of your sum assured.
• Then you’ll have to share the original bills and receipts, net liability will be computed based on the surveyor reports and your bill will be settled (deductibles may apply based on the terms and conditions).

Documents require to claim for a commercial property insurance varies with insurance company. Below is the list of common documents required to claim for property insurance:

• Duly filled and signed claim form
• Building plan
• FIR copy or fire brigade report, document showcasing reason loss or damage
• Bills and receipts
• Damage certificate in case of machinery and equipment
• KYC documents
• Cancelled cheque or bank passbook as NEFT mandate for receiving claim amount