IMPORTANCE OF PROPERTY INSURANCE.
Living life without an insurance is living dangerously and with too many fears. Going without insurance is a huge gamble that a lot of people engage in especially in Nigeria. The role insurance plays are very crucial and cannot be undermined. Having a property insurance is one of the best decisions you can make as a property owner.
Let’s step back a little and examine how important insurance is. Insurance helps to manage risks of different kinds. From health, car, business, home, property insurance and much more. Although insurance is an intangible product and sometimes the value is questioned. However, one of the best ways to secure our financial state is through insurance.
What is Insurance?
An insurance is a contract that helps an individual or business receive reimbursement and financial protection from the insurance company in event of any damage or any other unforeseen risk or circumstances. Typically, insurance protects the insured against various forms of risks.
You can refer to it as a means of transferring risk to the insurance company and receiving financial remuneration in case the damage beyond the control of the insured. Some of the types of insurance in Nigeria include fire insurance, life insurance, marine insurance, property insurance.
The insurance contract you make with an insurance company is known as an insurance policy. This document contains all the terms and conditions agreed upon in the insurance contract. A monthly payment is made by an individual or business to service this contract. This is called an insurance premium.
If you are interested in having an in-depth knowledge of insurance and importantly, property insurance then this article is recommended for you. That being said, here are 5 major importance of property insurance.
1. Liability Coverage
One of the basic things that property insurance offers is liability insurance coverage. This provides you protection against financing risk from lawsuits and claims in that regard. It is majorly a type of property insurance that protects you against third-party insurance claims. It covers every form of bodily injury as well as property damage.
It is a good idea for homeowners as well as car owners. For car owners, this is called Automobile Liability Insurance Coverage. This covers you in event of an accident or any injury that happens in your car.
2. Flood/Damage Insurance
In some cases, natural disasters are unpredictable. You cannot exactly tell it will happen. This is why property insurance is very important. One of the benefits of property insurance is flood and damage insurance. This secures you even when there is a natural disaster such as flooding, earthquake, fire outbreak and the likes.
Embedded in the flood and damage insurance is also water damage insurance. In the case of accidental pipe burst or leakage, the insurance company takes care of the damage.
3. Art and Jewelry Insurance
Some homeowners possess expensive artworks as well as pieces of jewelry made of diamond, gold and other expensive materials. In the case where your valuables get damaged, a fixed amount will be given to you. However, before completing the insurance contract process, request that your insurance provider adds a floater to your property insurance.
4. Monetary Value
Property insurance offers numerous benefits including monetary value. In event of theft or any other kind of uncontrollable problem, the property insurance company covers you with a fixed amount of money. The amount given is dependent on how much your property insurance is worth. This is one of the advantages of insuring your property over time. In some cases, insurance companies offer the cash value or cash equivalent of a damaged property. This will only be effective if the property was insured and is included in the insurance policy. The amount given to the policyholder is based on the predetermined value of his or her insurance.
5. General Security
Risk of properties cannot be controlled in all cases. Property insurances offer protection in such cases. Some other insurance under property insurance includes earthquake insurance, theft insurance, flood insurance, home insurance and more. All these and more provide security to the property owner.
Property insurance allows the insured to be reimbursed in event of any problem as long as they are covered. The property insurance allows the insured to make claims to reimbursement as long as they are covered. Which may be as a result of fire outbreak, flood or other occurrences.
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