Property Insurance: Types, Benefits of Protection, and Premium Prices

Property Insurance: Types, Benefits of Protection, and Premium Prices - When you have valuable assets in the form of property, you should provide protection in the form of insurance. The purpose of property insurance is to avoid financial losses in the event of disaster or damage to the asset. Property that can be given protection in the form of houses, apartments, and offices.

How important is property insurance?

Financial Indemnity

Future events no one can predict, but of course we can be on guard by providing maximum protection. When you insure the property assets owned, then if there is damage that results in financial losses, the insurance will provide compensation in accordance with the agreed policy.

All Assets Protected

Not only protect the outside aspect of the building, you can also protect everything inside the building. Including property in it, furniture, artwork, and other valuables. Of course, all these items must be in the agreement when buying insurance.

Stable Property Value

One of the goals of this insurance is to keep the value of the property stable because the insurance will provide compensation when things happen that are not desirable. So, you can be sure you don't have to spend extra money anymore. You also don't have to pay the cost of architects or surveyors and consultants when renovating buildings.

Stable Property Value

Avoid the risk of lawsuits

Another advantage is that it can protect you from lawsuits. This is if there are other people who suffered injuries due to disasters that occur inside your property, the insurance will overcome it.

Types of Property Insurance

Property All Risk Insurance (PAR)

This protection is offered for business property, higher education institutions, as well as other commercial properties that are most likely to experience unexpected events. Generally, coverage of protection provided due to fire, lightning strikes, explosions, aircraft strikes, smoke (FLEXAS), hurricanes, storms, floods, landslides, earthquakes, strikes, riots, riots, other people's evil deeds and other risks.

Indonesian Fire Insurance Standard Policy (PSAKI)

This type of insurance provides protection to property caused by fire, lightning, explosions, airplane falls, smoke. Then, in addition to the main benefits listed in the PSAKI, it can also be expanded with guarantees of other risks, such as riots, strikes, damage due to evil deeds, flood riots, hurricanes, storms and others.

How Much Does Property Insurance Premium Cost?

In the calculation using the benchmark value of TSI (Total Sum Insured). In this case TSI is the amount of overall property value, including the price of the building and the contents of the building. The loss of this property will be in the policy and becomes the nominal paid when there is a loss.