Property Insurance - Types, Eligibility, Documents Claim Process (2024)

Property investment is usually one of the most expensive investments you make in your lifetime. Hence it is important you protect this investment against unfortunate events or accidents, such as fire or mechanical damage. What will happen if any such event takes place? Have you got your property covered? If not, this is the time to do it.

No matter if you are a residential or a commercial property owner. You must insure your property against loss or damage caused due to unexpected accidental events. You can do the same by simply buying a property insurance policy. Insurers offer different types of property insurance policies offering many coverage options.

For example, you can buy a home insurance policy for the home you live in. On the other hand, you can buy a renters insurance policy for the house that you have rented out.

Keep reading to learn about property insurance, its types, eligibility, and documents.Also, go through the property insurance application and claim process.

What is Property Insurance?

Property Insurance refers to different types of property insurance policies.Homeowners insurance, renters insurance, earthquake insurance, and flood insurance are a few.

Property insurance provides owners with coverage against loss or damage caused to their property due to covered unfortunate events. They help owners get financial reimbursem*nts for the expenses they incurred while fixing these damages.

Most property insurance policies also cover the structure and content of the insured property. Keep reading to know the different types of property insurance policies with their coverage benefits.

Types of Property Insurance

We list out the major types of property insurance policies available in India.

1. Home Insurance

These types of property insurance policies help property owners protect their homes against loss or damage caused due to theft, fire, or natural & manmade disasters. Residential properties like apartments, flats, villas, bungalows, etc. can be insured using this type of property insurance policy. The insurance plans help insured people cover the expenses incurred due to damages. Additional spaces such as a garage, shed, washroom, etc., are also covered under these insurance plans.

2. Renter’s Insurance:

Property owners can buy these types of property insurance policies when renting out their properties. The Renter’s Insurance covers loss or damages caused to the property by tenants. Electronic appliances, furniture, fittings, and other expensive installations are also covered under these insurance policies. People also avail of these types of property insurance policies when renting out commercial property.

3. Commercial Insurance

These types of property insurance plans are for commercial property owners. They can insure their business units, shops, factories, warehouses, etc. by simply purchasing a property insurance policy from their preferred insurance company. Financial losses caused to commercial properties due to natural disasters are also covered under such plans.

4. Fire Property Insurance

Fire Property Insurance Plans help people protect their properties against losses or damages caused due to fire. The insurance plans cover fire accidents caused due to explosions, implosions, lightning, etc. Valuables such as fixtures, fittings, furniture, etc., placed in the insured property are also covered. These types of property insurance plans can be bought for both individual and commercial properties.

5. Public Liability Insurance

These are third-party property insurance policies that can be availed of by property owners to protect themselves against the losses or damages caused within their property. These insurance policies best suit the owners of commercial properties such as bakeries, restaurants, hotels, cafes, etc. to pay for losses caused to their customers. Residential property owners can also purchase this type of property insurance policy to insure losses or damages caused to their guests while they stay in their place.

Types of Coverage Property Insurance Offers

Here are three major types of coverage that different types of property insurance providers offer.

Option 1:This type of property insurance policy covers only the contents of the insured residential or commercial space.

Option 2:This type of property insurance policy covers the contents of both, the building and the contents of the insured residential or commercial property.

Option 3:This type of property insurance policy covers the contents of both, the building and the contents of the insured residential or commercial property, in addition to the valuables, such as gold, cash, jewellery, cash counter, etc., placed inside them.

Eligibility Criteria for Buying a Property Insurance Policy

The eligibility criteria differ for different types of property insurance policies. However, here are a few major requirements that you must meet as an applicant.

• The applicant must be an Indian resident.
• The applicant must own the residential or commercial property that needs to be insured.
• The applicant must age between 18 and 60 years.
• An under-construction property, a plot, land, or a kutcha house cannot be insured.
• The applicant must have a good credit history.
• The geographic location of the property plays a critical role in the application approval process.

Documents Required to Buy a Property Insurance Policy

Find below the list of documents you need to provide when purchasing a property insurance policy.

• A police investigation report
• FIR copy, in case of an accidental loss or damage
• A filled-out application form
• Repair estimates
• Original Invoice in case of a product replacement
• Invoices of owned articles, if any
• Court summons, if any
• Medical certificates for injuries or death, if any

The insurance provider may ask for some additional documents based on the nature of the event.

Things to Consider When Choosing a Property Insurance Policy

Various insurance companies offer different types of property insurance policies based on the requirements of their target audience. To choose the one that best fits your preferences, you must look out for the following things.

• Insurance Premiums:Your chosen property insurance policy must have affordable monthly, half-yearly, or annual premiums. This helps you pay for the same while managing to pay for your other financial requirements.
• Policy Tenure:Most property insurance policies come with a policy tenure of one year. Check the same for your policy with your chosen insurance service provider. Also, check the policy renewal process. A simple and quick policy renewal process helps extend the coverage duration.
• Liability Cover:Liability cover is the amount that your insurer provides you after your insurance claim gets approved. However, the amount is disclosed at the time of policy purchase. Make sure you check how much coverage your chosen property insurance policy offers. The amount offered helps you get rid of your financial liabilities in the case of an unexpected event.
• Extended Coverage:You must check if your selected property insurance policy covers all the related expenses, in addition to the main cover. You can compare different insurance policies in terms of coverage amount and eligibility criteria. Make sure you choose the one that offers extended coverage at a lower premium amount.
• Claims Registration:The best property insurance policy always has a simple claim process. You can contact the help and support team of your chosen insurer to know the list of documents you need to provide when registering a property insurance claim. A simple claims process helps you get a quick reimbursem*nt with minimal documentation.
• Claim Settlement Ratio:Make sure you check the claims settlement ratio of your chosen property insurance provider. Dividing the total number of claims registered in one year by the number of claims the insurance company has settled helps you find the claims settlement ratio. It must range above 80 per cent.

How to Apply for a Property Insurance Policy Online?

Now that you have chosen the best-fit property insurance policy, here are a few simple steps you can follow to apply for one online.

1. Fill Out the Application Form:Visit the online portal of the chosen property insurance provider. Fill out the online application form by providing the required details related to you and your property.

2. Attach the Required Documents:Attach the required documents and submit the form. These documents help insurers verify your details and finish the policy registration

3. Check the Add-Ons:Some property insurance providers offer a list of add-ons that you can buy separately based on your requirements. For example, the loss or damage caused due to the depreciation of your property is not included in the regular property insurance policy. However, you can get additional coverage against the same by purchasing an add-on.

4. Pay the Premium Amount:Next, you will get an option to choose the premium amount and its payment schedule. Next, pay the premium using your preferred payment method. You can pay the premium using a credit or debit card, online banking, or wallet applications.

5. Print the Insurance Card:Once the premium payment gets processed, you will get the insurance card up on your screen. Make sure you download or print it for future reference. You may also get it sent to your registered email address. You can check for the same with the help support team of your insurance service provider.

How to Raise a Property Insurance Claim Online?

Find below a few simple steps to register a property insurance policy claim online.

1. Report the Incident:Contact your insurer and report the incident. You need to provide them with all the required loss or damage-related details.

2. Lodge an FIR:Next, you need to lodge an FIR for the unfortunate incident that has occurred. Make sure you get a copy of the FIR as it is one of the essential documents to provide to the insurance company.

3. Provide Required Details:Provide all the relevant information including the policy number, the policy registration details, the FIR number, etc. to the insurance provider.

4. Get the Inspection Done:Next, the surveyor of the insurance company will prepare the inspection report. They will process the claim request when all the details provided are verified

5. Provide Essential Documents:Provide all the required documents to the insurance provider. The set of documents varies based on the requirements of different types of property insurance policies.

6. Claim Submission:Once done, the final report will be made by the surveyor. This report will be submitted to the insurer with a set of supporting documents.

7. Wait for Approval:Wait for approval from the insurance company. You will be notified about the same via a call, SMS, or email.

Best Property Insurance Companies

Find below the list of the top insurers providing different types of property insurance policies.

• Bajaj Allianz General Insurance Company Limited
• Bharti AXA General Insurance Company
• Cholamandalam MS General Insurance Company Limited
• IFFCO Tokyo General Insurance Company
• National Insurance Company Limited

Key Takeaways on Property Insurance

Find below a few key takeaways you must keep in mind when buying a property insurance policy.

• Types of property insurance policies offer either liability coverage or protection against the loss or damage caused to the property.
• Three major types of property insurance policy coverage include an actual cash value, replacement benefits, and extended replacement costs.
• Homeowners, renters, small, medium and large business owners, etc., can apply for a policy insurance policy.
• Pre-existing damages, loss of cash, or loss caused due to depreciation are some of the property insurance policy exclusions.
• Types of property insurance policies include homeowners insurance, renters insurance, earthquake insurance, and flood insurance.