Property Insurance

Every home insurance company has its own policies for insurance coverage. In most cases though, home insurance agencies insure the
building structure of an apartment or villa, as the case may be, for its reconstruction value.

The following cases are covered under property insurance  

  • Damage due to fire, explosion of gas in domestic appliances or lightening
  • Damage due to bursting of water tanks, apparatus or pipes
  • Damage due to riots, malicious or terrorist acts
  • Damage due to flood, cyclone, inundation, storm, hurricane, tornado
  • Damage due to earthquake and landslide
  • Damage caused by aircraft, vehicles on road
  • Third party liability and personal accident

Ideally, any insurance coverage should include the expenses of rebuilding an apartment in the event of it being destroyed to such a point that it needs to be completely rebuilt. This can be the case in the event of an earthquake, fire or any other man-made calamity as well. The value of coverage extended in case of property insurance is based on the approximate expense that could be incurred on the reconstruction of a house and not on its market value. This amount is calculated by multiplying the built up area of a house with the rate per square foot.