Property Insurance Brokers

When you buy a property, you face the prospects of hazards that can destroy the value of your property. You become liable for compensation claims in case of someone's injury or death on your property. There are different types of risks associated with a property. As the owner of your property, you will be held responsible for all such risks. People take property insurance for the same reason they take other types of insurance - to hedge against risks and accidents. When an accident happens, you pay only a small amount while the rest of the amount needed for repair or injury claim settlement are paid by the insurance company. Without the property insurance cover in place, you will have to arrange all the money needed to fix the damage, pay for injuries, and pay for claims. There are many reasons why you have to take the property insurance policy when you buy a property.

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Coverage for Risks

Building or buying a residential or commercial building requires a big investment. A building is vulnerable to different types of risks. Some of the risks are related to natural hazards like storm, flooding, hail and lightning. Covers against theft, smoke and fire are standard in homeowner insurance policies. A typical homeowner's insurance does not cover earthquake damage. If you want insurance coverage for the earthquake damage, you have to ask for it. You will have to pay more for coverage against additional risks like earthquake. Consult an insurance broker if you want to know more.

Liability Coverage

Your property insurance covers both hazard and liability risks. Under the liability coverage, you are protected against accidents. If someone is injured on your property and files for a compensation claim, your insurance provider will pay for the medical bills. The insurance company will pay only up to the limit specified in the insurance policy. If you have a commercial property where lots of visitors will be visiting, it is important to take sufficient coverage for liability risks.

Basic Requirement

If you do not take insurance coverage for your property, you may be unable to obtain a home loan. A prospective buyer may refuse to buy your property from you due to lack of insurance coverage. Even prospective renters may not want to rent your property. A minimum level of insurance coverage is needed before you can proceed with your home sale or rental.

It is important to know that a homeowner's insurance covers only certain risks and items. For example, it may not provide coverage for cash and jewellery. You have to buy a supplemental policy or add riders in your property insurance if you need coverage for additional risks.