What is Property Insurance?
Property Insurance protects physical goods and the equipment of the business or home against any loss from theft, Property, and other perils. It helps to cover the cost of replacement, repair or reconstruction of the property. Property Insurance coverage is for loss from unexpected events which causes physical loss, damage or destruction of building and structures, plant and machinery, stock and other assets relating to your business. All micro-level enterprises like hotels, restaurants, offices, and others are eligible for this policy.
Highlights of Property Insurance
Types of Property Insurance coverages in India
The policy covers the insured property related to the business against insured perils at one location with the total value at risk up to ₹ 5 Crores. This shall
include buildings, plant & fixtures, machinery, stocks RM, and finished goods & stock in process. less
Recommended for: Offices, hotels & restaurants, educational institutions / schools / colleges, shops / retail outlets, malls, industrial / manufacturing units, utilities located outside the compound of industrial / manufacturing units, warehouse / godowns.
This policy coves for your dwelling (housing societies), against Property and natural calamities such as storm, floods, earth quake, etc. This policy acts as a safety net, covering your housing societies.
Recommended for: Housing societies.
This policy covers the insured property related to the business against insured perils at one location with the total value at risk above ₹ 5 Crore and up to ₹ 50 Crore. This include buildings, plant & fixtures,
machinery, stocks RM, and finished goods & stock in process. less
Recommended for: Small business owners, medium business owners or large business owners.
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Property Insurance Everything You Need to Know
Key benefits of Property Insurance Plans in India
The Bharat Sookshma Udyam Suraksha Policy gives insurance cover to Your property relating to Your business. Under this policy, insurer agree to pay You for the loss You suffer when unexpected events cause physical loss, damage or destruction of building and structures, plant and machinery, stock and other assets relating to Your business.
This policy is for enterprises where the total value at risk across all insurable asset classes at one location does not exceed ₹ 5 Crore (Rupees Five Crore) at the policy commencement date.
- For building, plant and machinery, furniture, fixture and fittings and any other contents: Reinstatement Value
- For stocks:
- For raw material: landed cost at your premises
- For stock in process: Input cost of the stock at the time of damage
- For finished stock: Manufacturing cost of the finished stock or the contract price of goods sold but not delivered
- Bullion or unset precious stones, any curios or works of art or obsolete machinery and the like: Agreed value basis
- This policy covers the property if total assets value at one location does not exceed Rs 5 cr at policy commencement date
- Waiver of Under Insurance up to 15%
- Named Peril Policy
- Coverage for Plant and Machinery, Stock and other assets
- Cover for furniture, fixture, and fittings (Loss or Destruction)
- Includes temporary removal of stocks
- Cover for Specific Contents
- Start-up expenses
Property Insurance - Inclusions and Exclusion
Inclusions
Fire, including due to its own fermentation, or natural heating or spontaneous combustion
Explosion or Implosion - This policy protects against the loss caused due to explosion and implosion. A vessel can explode when it’s inside pressure reaches to or is more than the atmospheric pressure outside. Whereas an implosion occurs when the external pressure is more than the internal pressure
Lightning - Fire or any other damage caused to the property due to a peril like lightning is covered by the fire insurance policy
Earthquake, volcanic eruption, or other convulsions of nature
Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Tsunami, Flood and Inundation - These violent destructions are also covered under fire insurance
Acts of terrorism - An act of terrorism means an act or series of acts, including but not limited to the use of force or violence and/or the threat thereof
Bursting or overflowing of water tanks, apparatus and pipes: This policy also covers loss and damage caused to the property by water due to the Bursting or overflowing of water tanks, apparatus and pipes
Leakage from automatic sprinkler installations
Theft within 7 (seven) days from the occurrence of and proximately caused by any of the above Insured Events.
In built covers
Addition, alterations or extensions- Property that You erect, acquire or add during the Policy Period is covered up to 15% of the sum insured for that item. (Excluding Stocks)
Temporary removal of stocks- Loss to stocks temporarily removed to other premises for fabrication, processing or finishing up to 10% of value
- Money up to ₹ 50,000 during the policy period and certain documents like deeds, drawing etc. up to ₹ 50,000 during the policy period.
- Computer programmes, information and data
- Personal effects of employees, directors and visitors
Stocks on floater basis- Loss to stocks located at more than one named location.
Start-up expenses- Start-up cost incurred by You, consequent upon a loss or damage due to insured events up to ₹ 1 lakh ( Rupees One Lakh) during the policy period
Professional fees- Reasonable fees of architects, surveyors and consulting engineers upto 5% of the claim amount
Cost of removal of debris- Reasonable expenses for removal of debris up to 2 % of the claim amount.
Cost compelled by Municipal Regulations- Additional cost of reconstruction of property incurred solely for complying with municipal regulations.
Add on covers
Declaration policy for Stocks: Cover for frequent fluctuations in stock/stock values on declaration basis
Exclusions
Burning of Insured Property by any order of Public authority
Deliberate, wilful or intentional act or omission
Loss, destruction or damage to stocks in cold storage due to change in temperature
War, invasion, war-like operations
Ionising radiation
Pollution or contamination
Property is missing or has been mislaid
Consequential or indirect loss or damage
Costs, fees or expenses for preparing any claim
Insured premised or building remains unoccupied for more than 30 days
Bharat Laghu Udyam Suraksha Policy
This policy covers the property if total assets value ranges above Rs 5 crore upto Rs 50 crore at policy commencement date.
It covers loss due to unexpected events which result to physical loss, damage or destruction of building and structures, plant and machinery, stock and other assets relating to your business.
Key Benefits of the policy
Inclusions
The standard inclusions for goods carrying vehicle insurance are –
Fire, including due to its own fermentation, or natural heating or spontaneous combustion
Explosion or Implosion - This policy protects against the loss caused due to explosion and implosion. A vessel can explode when it’s inside pressure reaches to or is more than the atmospheric pressure outside. Whereas an implosion occurs when the external pressure is more than the internal pressure
Lightning - Fire or any other damage caused to the property due to a peril like lightning is covered by the fire insurance policy
Earthquake, volcanic eruption, or other convulsions of nature
Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Tsunami, Flood and Inundation - These violent destructions are also covered under fire insurance
Acts of terrorism - An act of terrorism means an act or series of acts, including but not limited to the use of force or violence and/or the threat thereof
Bursting or overflowing of water tanks, apparatus and pipes: This policy also covers loss and damage caused to the property by water due to the Bursting or overflowing of water tanks, apparatus and pipes
Leakage from automatic sprinkler installations
Theft within 7 (seven) days from the occurrence of and proximately caused by any of the above Insured Events.
In built covers
Addition, alterations or extensions- Property that You erect, acquire or add during the Policy Period is covered up to 15% of the sum insured for that item. (Excluding Stocks)
Temporary removal of stocks- Loss to stocks temporarily removed to other premises for fabrication, processing or finishing up to 10% of value
- Money up to ₹ 50,000 during the policy period and certain documents like deeds, drawing etc. up to ₹ 50,000 during the policy period.
- Computer programmes, information and data
- Personal effects of employees, directors and visitors
Stocks on floater basis- Loss to stocks located at more than one named location.
Start-up expenses- Start-up cost incurred by You, consequent upon a loss or damage due to insured events up to ₹ 1 lakh ( Rupees One Lakh) during the policy period
Professional fees- Reasonable fees of architects, surveyors and consulting engineers upto 5% of the claim amount
Cost of removal of debris- Reasonable expenses for removal of debris up to 2 % of the claim amount.
Cost compelled by Municipal Regulations- Additional cost of reconstruction of property incurred solely for complying with municipal regulations.
Add on covers
Cover for stocks at multiple locations under one Sum Insured.
Cover for frequent fluctuations in stock/stock values on declaration basis
Exclusions
Burning of Insured Property by any order of Public authority
Deliberate, wilful or intentional act or omission
Loss, destruction or damage to stocks in cold storage due to change in temperature
War, invasion, war-like operations
Ionising radiation
Pollution or contamination
Property is missing or has been mislaid
Consequential or indirect loss or damage
Costs, fees or expenses for preparing any claim
Insured premised or building remains unoccupied for more than 30 days
