Property Insurance

CHAPTER-1

(1.1)MEANING
(1.2)DEFINITION
(1.3)TYPES OF INSURANCE

(1.1) MEANING OF INSURANCE

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Insurance provides financial protection against a loss arising out of happening

of an uncertain event. A person can avail this protection by paying premium to an
insurance company.
A pool is created through contributions made by persons seeking to protect
themselves from common risk. Premium is collected by insurance companies which
also act as trustee to the pool. Any loss to the insured in case of happening of an
uncertain event is paid out of this pool.
Insurance works on the basic principle of risk-sharing. A great advantage of
insurance is that it spreads the risk of a few people over a large group of people
exposed to risk of similar type.

(1.2) DEFINITION

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Insurance is a contract between two parties whereby one party agrees to
undertake the risk of another in exchange for consideration known as premium and
promises to pay a fixed sum of money to the other party on happening of an uncertain
event (death) or after the expiry of a certain period in case of life insurance or to
indemnify the other party on happening of an uncertain event in case of general
insurance.
The party bearing the risk is known as the 'insurer' or 'assurer' and the party
whose risk is covered is known as the 'insured' or 'assured'.

(1.3)TYPES OF INSURANCE

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Property Insurance

Life insurance:
Life insurance is a contract between an insured (insurance policy holder) and
an insurer, where the insurer promises to pay a designated beneficiary a sum of
money (the "benefits") upon the death of the insured person. Depending on the
contract, other events such as terminal illness or critical illness may also trigger
payment. The policy holder typically pays a premium, either regularly or as a lump
sum. Other expenses (such as funeral expenses) are also sometimes included in the
benefits.
The advantage for the policy owner is "peace of mind", in knowing that the
death of the insured person will not result in financial hardship for loved ones and
lenders.
It is possible for life insurance policy payouts to be made in order to help
supplement retirement benefits; however, it should be carefully considered throughout
the design and funding of the policy itself.
Life policies are legal contracts and the terms of the contract describe the
limitations of the insured events. Specific exclusions are often written into the

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contract to limit the liability of the insurer; common examples are claims relating to
suicide, fraud, war, riot and civil commotion.
Life-based contracts tend to fall into two major categories:

Protection policies designed to provide a benefit in the event of specified

event, typically a lump sum payment. A common form of this design is term
insurance.

Investment policies where the main objective is to facilitate the growth of

capital by regular or single premiums. Common forms (in the US) are whole
life, universal life and variable life policies.

General insurance:

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Property Insurance
General Insurance is the type of insurance which covers the loss and pays
compensation against any uncertain financial event. It is often referred to as the nonlife insurance. General Insurance covers all aspects of loss in case of objects and one
which does not fall under life insurance and is particularly done for property loss in
any natural hazards, theft, burglary, accidents etc. General Insurance is often under
annual contracts but there are also a few products under general insurance policies
which are under the long-term contracts.
The general insurance rate is a factor used to determine the amount to be
charged for a particular amount of insurance coverage, called the premium. Risk
management, the practice of appraising and controlling risk, has come out as a
discrete field of study and practice.
These are the common types of general insurance:

Home Insurance:Houses, lands and other real estate properties and hard assets are
subject to accidental risks like theft, damage, destruction due to natural disasters or
fire accidents etc. with such large investments gone into buying a real estate property
like your home or office, the problem or risk involved is a loss of large amount of
money.Home and property insurance protects you in managing and protecting against

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these risks. The cost of a real estate property and its monetary insurance is mostly
based on the value of the already insured hard assets and also the place or location in
which the assets are situated.
Travel Insurance: This is intended to shoulder or cover any of the financial or any
other losses which were basically incurred by the insured while on his journey or
travelling, be it nationally or internationally, such as mountain trekkers, cruise
travellers or simply as a tourist.
Auto Insurance: Any vehicle on the road, no matter how safe it is driver is, some
times bound to meet with an accident or two, which may leave it with just a few
scratches, or crash it up totally. Most countries today require or obliged you to have
an auto insurance while on road in your vehicles.If you have an accidental auto crash,
a total repair could cost you a lot or a fortune. On the other hand, a little scratch on
your Land Cruiser may also soar up your bills to a high level.Whether or not you want
or need auto insurance mostly depends on the type of automobile you own.If you have
an expensive car and a little repair could worry you out financially, you should
therefore decide in buying an all-inclusive and crash insurance which will protect you
against any and every harm done to your vehicle.
Health Insurance: Whether you like it or not, almost always we face certain health
challenges that may cause us a lot through medicines, hospitalization bills and other
related expenditures. If we will not be smart and ready enough with this kind of cases
then we will surely find it so hard to face sickness and other form of health problems
such as therapy and many other treatments such as antibiotics treatment.
Fire insurance: Fire is one truly big problem that may endanger our valuables,
properties and even businesses. Worse it may threaten our lives and those of or loved
ones. Well this would not be very hard unless we are ready to face such calamity with
fire insurance. This will help us become more secured and ready to face fire cases.

CHAPTER:2
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EFFECTS OF INSURANCE
(2.1) INSURANCE AS SECURITY TOOL
(2.2) CONTRIBUTION TO AN INDIAN
ECONOMY
(2.3) CURRENT SCENARIO
(2.4) FUTURE SCENARIO

(2.1)INSURANCE AS A SOCIAL SECURITY TOOL

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Individuals income is dependent upon the investment of his time. Over a
period of time, he saves sufficiently to provide for the time, when he is too old to
earn. But no body can guarantee him this time.
The concept of insurance was born. A co-operative society was created, where
each member of the family contributed a small portion to provide for a possible big
loss which was too big for anyone to bear.
Insurance, let it be noted, does not prevent the loss to occur. It cannot prevent
thievery, fire, sinking of a ship due to storm or even death of the bread winner. Far
from it, if they could be prevented, there would be no need for insurance. It is only the
damages beyond the control of men, purely accidental, or due to fury of nature, which
are subjects for insurance.
The factories would not restart after a fire, houses cannot be rebuilt after an
earthquake or a cycle or a motorcycle for that matter cannot be replaced after being
stolen. Unlike a socialist society or a highly developed capitalist society where the
State takes care of individuals who become destitute or deprived, in a developing
society like ours, the State is too poor to take up such responsibilities.
The declaration of Human Rights by United Nations similarly declares from
the house top that everyone has a right to a standard of living adequate for health,
well-being of himself and his family including food, clothing, housing, medical care
and necessary social services and the right to security in the event of unemployment,
sickness, disability, widowhood and other loss of livelihood in circumstances beyond
his control.
If wishes were horses, beggars would ride. Even in highly developed countries
like Britain and United States where some medium of social security is available,
insurance, both life and general is a thriving business.
Normally in case of human beings, 90% of the income comes from investment
of time and 10% of the income comes from savings. As one grows old, the ratio is
reversed and 90% of his income comes from his savings and 10% from investment
ofhis time. That is the ideal situation. But who can guarantee him the time - time to
save adequately so as to reverse this ratio.
In case of a house burnt due to an accidental fire, he does not have to go to
other members of the society begging help. Insurance thus creates a society of proud

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people who know how to take care of themselves even during difficult times.
Insurance is thus a tool of social security par excellence.

(2.2)CONTRIBUTION TO INDIAN ECONOMY

Insurance is the only sector which garners long term savings Insurers are
increasingly introducing innovative products to meet the specific needs of the
prospective policyholders. An evolving insurance sector is of vital importance for

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Property Insurance
economic growth. While encouraging savings habit it also provides a safety net to
both enterprises and Individuals.
Insurance Companies receive, without much default, a steady cash stream of
premium or contributions to pension plans. Various actuary studies and models enable
them to predict, relatively accurately, their expected cash outflows.
Generates Long term funds for infrastructure and strong positive correlation
between
capital

development
markets

of
and

insurance/pension sector For

GDP to grow at 8 to 10%,
qualitative improvement in
infrastructure

is

essential.

Estimates of funds required

for

development

of

infrastructure vary widely.

An investment of 6,19,600crore is anticipated in the next 5 years. Tenure of funding
required for infrastructure normally ranges from 10 to 20 years. The insurance
industry also provides crucial financial intermediary services, transferring funds from
the insured to capital investment, critical for continued economic expansion and
growth, simultaneously generating long-term funds for infrastructure development. In
fact infrastructure investments are ideal for asset-liability matching for life insurance
companies given their long term liability profile.The insurance sector in India, which
was opened up to private participation in the year 1999, has completed over seven
years in a liberalized environment. With an average annual growth of 37 per cent in
the first year premium in the life segment and 15.72 per cent growth in the nonlife
segment, together with the largest number of life insurance policies in force.

(2.3)CURRENT SCENARIO

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Global integration of financial markets resulted from de-regulating measures,
technological information explosion and financial innovations. Liberalisation and
Globalisation have allowed the entry of foreign players in the Insurance sector. With
the entry of private and foreign players in the Insurance business, people have got a
lot of options to choose from. Radical changes are taking place in customer profile
due to the changing life style and social perception, resulting in erosion of brand
loyalty. To survive, the focus of the modern insurers shifted to a customer-centric
relationship. The paper focuses the current position of insurance industry.
Liberalisation and Privatisation
India's economic development made it a most lucrative Insurance market in
the world. Before the year 1999, there was monopoly state run LIC transacting life
business and the General Insurance Corporation of India with its four Subsidiaries
transacting the rest. In the wake of reform process and passing Insurance Regulatory
and Development Authority (IRDA) Act through Indian parliament in 1999, Indian
Insurance was opened for private companies.
Liberalisation on the Insurance sectors has allowed the foreign players to enter
the market with their Indian partners. Most of the foreign Insurers have joined within
the local market. India offers immense possibilities to foreign Insurers since it is the
world's most populous country having over a billion people.
Insurance industry had ten and six entrants in life and non-life sector
respectively in the year 2000-2001. The industry again saw two and three entrants in
the life and non-life business respectively in the year 2001-2002. One additional
entrant was made both in the life and in non-life business in 2004 and 2005
respectively. At present there are fourteen companies each in Life and General
Insurance. The Funds earlier generated by the state owned insurers have been
diversified with other new insurers. We should wait and see how the new players are
going to boost up our economy.
Competition

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Private and Foreign entrants in the Insurance Industry made others difficult to
retain their market. Higher customer aspirations lead to new expectations and compel
him to move towards the insurer who provides him the best service in time. It
becomes less viable for them even to maintain the functional networks or competitive
standards and services. To survive in the Industry they analyse, the emerging
requirements of the policyholders / insurers and they are in the forefront in providing
essential services and introducing novel products. Thereby they become niche
specialists, who provide the right service to the right person in right time.
The following table shows the market share of non-life insurers
NON LIFE INSURERS
1.

New India

21.41

2.

National

17.11

3.

United India

17.11

4.

Oriental

17.02

5.

ICICI- Lombard

8.04

6.

Bajaj Allianz

6.15

7.

IFFCO-Tokio

4.00

8.

Tata-AIG

2.89

9.

ECGC

2.50

10.

Royal Sundaram

2.17

11.

Cholamandala m

1.22

12.

HDFC-Chubb

0.89

13.

Reliance General

0.75

14.

Agriculture Insurance Co.

--

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Property Insurance

Private total

27.35

Public total

72.65

Grand total

100.00

(2.4)FUTURE OF INSURANCE SECTOR IN INDIA

According to me, future of insurance sector is very good in India. Current
market share of new companies is not attractive but the potential market is very
attractive and lucrative in this country.
Insurance has gotten popularity in cities ,most of members in every
family had taken different type of insurance policy ,where as only head of the
family is insured in the towns. The position of insurance sector is worse in the villages
.People living in villages do not know the importance of insurance and no family
member is insured in many of the families.
New companies has entered into the India ,not because of the current market
but because of the potential market ,as the population of India is increasing
continually .They believe that if they will educate people about the importance of
insurance then a good response may come in the future.
To get success in India companies have to change the mindset of people
because the Indian people believe more on public sector companies. So, The
companies belong to private sector must have to provide the lucrative product with
user friendly facilities.

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CHAPTER 3
FIELD STUDY
(3.1)

INTRODUCTION

TO

PROPERTY

INSURANCE
(3.2)

CONCEPT

OF

PROPERTY

INSURANCE
(3.3) TYPES OF PROPERTY INSURANCE
(3.4) RENTAL PROPERTY INSURANCE
(3.5) METHODS
(3.6) BENEFITS
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(3.7) LIST OF COMPANIES

(3.1)

INTRODUCTION

OF

PROPERTY INSURANCE
Property insurance insures your business
against loss or damage to the location of the
business and to its contents. It will also insure
against loss or damage to contents under your control. Finally, if your business rents
or leases a location or travels to other physical locations, then your business will be
required by the property owner to carry property insurance by the terms of the lease or
contract.
The more kinds of loss the policy covers, the higher the premium. Property
insurance comes in two forms:

Broad Form This type of policy identifies a number of different types of

disasters and covers against loss from all identified causes in the policy.

Single or Specific Peril This type of policy insures against loss only from
the identified peril. This is typically a separate fire policy. However, other
single perils can be insured against, for example, terrorism.

For most small businesses, a broad form property insurance policy is included in a
packaged policy known as the business owners policy and will be the best coverage
for the premium dollar. Some businesses, however, either because of specific risks or
unusually high risk, may not be eligible for such a package. In that case, several
specific peril policies may need to priced and examined.

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Property insurance policies can be modified:

Endorsements Endorsements add increased coverage or identify other

business locations that are covered. This can include a customers location, for
example, if your business is working at their location. Endorsements are a big
benefit for your business and can be added, typically by a phone call, to a
policy relatively easily if you have a good insurance professional.

Exclusions Exclusions take away coverage. Your insurance professional or

insurer will tell you that property policies are always written with the suchand-such exclusion. Exclusions are the business insurance purchasers worst
enemy. Many insurers claimed that the exclusion in their policies for wind
damage excluded much of the damage from coverage. Regardless of what an
insurer tells you: exclusions take away coverage.

Schedules Schedules are lists of covered locations and property. These must
be updated regularly and at any time a location or major covered equipment
changes or is purchased. Good insurance professionals will contact you on a
regular basis to discuss updating scheduled locations and equipment. If a
location or piece of equipment is not a scheduled location or content, there
is a possibility that a claim could be denied on that basis.

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(3.2) CONCEPT OF PROPERTY INSURANCE

The concept behind insurance is that a group of people exposed to similar risk
come together and make contributions towards formation of a pool of funds. In case a
person actually suffers a loss on account of such risk, he is compensated out of the
same pool of funds. Contribution to the pool is made by a group of people sharing
common risks and collected by the insurance companies in the form of premiums.
Lets take some examples to understand how insurance actually works:
Example 1
SUPPOSE

Example 2
SUPPOSE

Houses in a village = 1000

Number of Persons = 5000

Value of 1 House = Rs. 40,000/-

Age and Physical condition = 50

Houses burning in a yr = 5

years & Healthy

Total annual loss due to fire = Rs. Number of persons dying in a yr =

2,00,000/-

50

Contribution of each house owner = Economic value of loss suffered by

Rs. 300/-

family of each dying person = Rs.

1,00,000/ Total annual loss due to deaths = Rs.
50,00,000/

UNDERLYING

Contribution per person = Rs.

1,200/ASSUMPTION UNDERLYING

ASSUMPTION

All 1000 house owners are exposed to All 5000 persons are exposed to
a common risk, i.e. fire
PROCEDURE

common risk, i.e. death

PROCEDURE

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All owners contribute Rs. 300/- each as Everybody contributes Rs. 1200/- each
premium to the pool of funds

as premium to the pool of funds

Total value of the fund = Rs. 3,00,000 Total value of the fund = Rs. 60,00,000
(i.e. 1000 houses * Rs. 300)

(i.e. 5000 persons * Rs. 1,200)

5 houses get burnt during the year

50 persons die in a year on an average

Insurance company pays Rs. 40,000/- Insurance company pays Rs. 1,00,000/out of the pool to all 5 house owners out of the pool to the family members of
whose house got burnt
EFFECT
OF

all 50 persons dying in a year

INSURANCE EFFECT
OF
INSURANCE

Risk of 5 house owners is spread over Risk of 50 persons is spread over 5000
1000 house owners in the village, thus people, thus reducing the burden on any
reducing the burden on any one of the one person.
owners.

While insurance is expensive and certainly takes a chunk out of your budget,
being without it could lead to financial ruin. Always check with your employer first
for available coverage, as this will probably be where you will find the most
economical way to of securing coverage. If your employer doesn't offer it, obtain
multiple quotes from several insurance providers. Schedule times with agents who
offer coverage in multiple areas as they may have some discounts available if you
purchase more than one type of coverage.
Property insurance provides protection against most risks to property, such as
fire, theft and some weather damage. This includes specialized forms of insurance
such as fire insurance, flood insurance, earthquake insurance, home insurance, or
boiler insurance. Property is insured in two main waysopen perils and named perils.
Open perils cover all the causes of loss not specifically excluded in the policy.
Common exclusions on open peril policies include damage resulting from
earthquakes, floods, nuclear incidents, acts of terrorism, and war. Named perils

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require the actual cause of loss to be listed in the policy for insurance to be provided.
The more common named perils include such damage-causing events as fire,
lightning, explosion, and theft. There are three types of insurance coverage.
Replacement cost coverage pays the cost of replacing your property regardless of
depreciation or appreciation. Premiums for this type of coverage are based on
replacement cost values, and not based on actual cash value. Actual cash value
coverage provides for replacement cost minus depreciation. Extended replacement
cost will pay over the coverage limit if the costs for construction have increased. This
generally will not exceed 25% of the limit. When you obtain an insurance policy, the
coverage limit established is the maximum amount the insurance company will pay
out in case of loss of property.

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(3.3) TYPES OF PROPERTY INSURANCE

Property insurance includes several forms of insurance like:

EARTHQUAKE INSURANCE
This is a kind of property insurance that compensates the insurer in case his
property faces any kind of loss due to earthquake, but it is to be kept in mid that
homeowners insurance does not provide security in case of damages caused by
earthquake. Such type of insurance coverage comes with high deductible rates that
gains if the property gets fully damaged and does not help much in case of small
losses.

EARTHQUAKE
INSURANCE
OFFER

AND

RESPONSE
Many

property

owners

utilize

earthquake insurance to
help defray the expense
of costly earthquake repairs. Residential property insurers (insurance companies that
sell homeowners policies and policies for qualifying condominiums and apartments)
are required under California Insurance Code (CIC) Section 10081 to offer earthquake
coverage for the peril of earthquake. The mandatory earthquake offer must:

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Be made in writing

Describe coverage amounts

List the deductible offered

State the policy premium

You have 30 days from the date of mailing from the insurance company to accept
the offer of earthquake coverage. If your
homeowners insurance company does
not receive a response from you, then
they consider the offer rejected. Your
insurance company is only required to
make the offer of earthquake coverage
every other year. The law prohibits an
insurer from cancelling, rejecting, or
refusing to renew a residential property
policy solely because the policyholder has accepted the offer of earthquake coverage.

EARTHQUAKE COVERAGE
Every offer of earthquake insurance must provide coverage for your dwelling,
for your personal property (not less than $5,000 or 10% of the covered dwelling loss),
and for any additional living expense (ALE) of at least $1,500. You may waive ALE
coverage if you or your family do not occupy the dwelling you wish to insure. CIC
Section 10089(b) states that the maximum deductible that can be charged is 15% of
the policy dwelling limit. It is common for the deductible to be the maximum 15%. If
you desire earthquake insurance offering more than the minimum limits and a
deductible less than the maximum established by law, then you may contact your
current residential property insurer or earthquake insurer to see if higher limits or
lower deductibles are available.

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ALE coverage is designed to pay for the cost associated with living somewhere else
while repairs are being made to your home. Typically your insurer will cover
increases in your normal living expenses to help you maintain the standard of living
you had before an earthquake damaged your home and personal property. ALE
coverage can include costs for the following:

Temporary rental home, apartment, or hotel room

Restaurant meals

Telephone or utility installation in a temporary residence

Relocation and storage

Furniture Rental

Laundry

SPECIAL EARTHQUAKE PROVISIONS

Insurance companies are required to offer earthquake coverage even if your
property does not meet current Building Code and Health and Safety Code
requirements relating to foundation anchor bolting and water heater bracing.
However, your insurer may charge additional premium and/or an increased
earthquake deductible if this is the case with your dwelling. Also, your insurance
company must disclose any available discounts (such as retrofitting) for earthquake
hazard reduction to your property in writing.
In some cases taking simple steps such as bolting your wood frame home to
the foundation can save your home from severe earthquake damage and can reduce
your earthquake insurance premium. Residential retrofitting includes, but is not
limited to the following:

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Anchoring a dwelling to its foundation through seismic bolting

Reinforcing and/or bracing the fireplace chimney

Securing and bracing the water heater to the dwelling frame

Installing automatic gas shut-off valves

Installing bracing for sheer walls

CLAIMS
1. Check your insurance to be sure that earthquake damage is covered. Most
standard home owners insurance policies do not cover earthquakes, which
means that you must purchase the coverage separately.
2. Keep a copy of your policy and insurance card near you while you call your
agent, as you will likely be asked questions that involve the information that
they contain.
3. Take notes of what the agent says over the phone. This way, you have a record
of any promises that are made.
4. Offer a phone number where you can be reached at any time, especially if you
have to leave your house while repairs are made. This may be a cell phone,
work phone or the number of the shelter or hotel where you are staying.
5. Schedule a time for an adjuster to look at the damage, the sooner you get the
done, the faster your earthquake insurance claim will go, so set up an
appointment as soon as possible.
6. Document damage, take photographs of both major destruction and minor
breakage. If you cannot take pictures, be sure to take notes regarding anything
that is broken, carefully describing the extent of the damage. The more detail

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that you include, the easier it will be for the insurance adjuster to get the
repairs you need.
7. Make a list of the broken item and their and their cost, including the receipts
from the original purchase is helpful. Otherwise, you will likely get market
value for the items that need to be repaired or replaced.
8. Get estimates of how much it will cost to fix the earthquake damage, quotes
from contractors are typically free, and this step can save you from having the
costs underestimated by your insurance company, give copies of the quotes to
your adjuster.
9. Acquire a proof of loss form from your insurance agent or adjuster. This is a
sworn statement regarding your losses that needs to be needs to be submitted
within about two months of the earthquake. It must be filled out before you
can get any compensation for your home, which means you should ask your
agent about it right away if they do not mention it upfront.

OTHER BUSINESS POLICIES THAT COVER EARTHQUAKE

LOSSES
Commercial Auto - Most standard commercial auto policies cover loss or damage
from earthquakes. This can include damage from falling debris, fire, or other events.

Workers' Compensation - Injury to employees at work by earthquake effects is

a covered loss under workers' compensation insurance.

Business Interruption - Some business interruption policies do not exclude

earthquakes as covered events, but check with your insurance professional.

If you do business in an at risk area (especially California or the West), you may
want to consider a separate earthquake policy or consider an endorsement adding such
protection. This is one risk that you know will happen someday.

FIRE INSURANCE

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Property Insurance

Fire insurance also falls under the forms of property insurance that offers
protection to office, residences, hospitals, shops, industries and corporate offices.
Damages caused by explosion, strike, riot, terrorist acts, landslide burst etc are all
covered under this and damages caused by war, any electrical equipment or
temperature change are not covered under such an insurance policy.
OBJECTIVE
a. Provide claims handling guidance and settlement of freight so that each process
can be carried out properly, accurately and on time.
b. Facilitate the implementation and control work procedures.

SCOPE:

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a. Fire claims include:

Partial Loss claims

Total Loss claims

Business Interruption claims (BI)

b. Guidelines and procedures applicable to fire insurance claims filed by through

the head office.

CLAIMS APPROVAL AUTHORITY

Authority to sign and approve the fire claims is set as given:
a. Up to Rs. 200.000.000,- (two hundred million rupiahs) for simple cases and
Non-Ex-Gratia Claims required verification from the Supervisor for approval
from the Assistant Manager and Technical GM.
b. Claims ranging from Rp. 200.000.000,- up to Rp. 1.000.000.000,- required
verification from the Assistant Manager for the approval of Technical GM.
c. Beyond the items a & b above, verification is required from the Assistant
Manager and the Technical GM for further approval from Management,
provided at least two signatures of Management.

THE PROCEDURE FOR EFFECTING FIRE INSURANCE.

The term fire denotes a condition of burning or visible flame accompanied by
heat. Fire insurance contract is an important and popular form of insurance for the
business world. A fire insurance contract is an agreement whereby one party in return
of a consideration, undertakes to indemnify the other party against financial loss
suffered by the insured as a result of damage or destruction of the insured property by
fire. A claim for the loss by fire can be entertained if there must be actual fire and the
fire must be accidental but not intentional.

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A fire insurance policy covers actual fire losses and any of the following
losses consequent upon fire:
i. Damages caused to property because of collapse of roof or side wall due to fire.
ii. Damages caused to property by sprinkling of water to put out the fire.
iii. Damages caused to property at the time of removing it in the hot haste from the
building under fire. All losses caused due to efforts in extinguishing fire.
iv. Damages by lighting are not covered under fire policy but if lighting cause ignition
of fire, it will be included in the policy of fire insurance.
v. It does not cover losses due to explosion but if it causes actual ignition which
ultimately spreads into fire, it will be covered by fire insurance policy.
A fire insurance contract is a contract of indemnity and as such the insured
cannot claim more than the actual amount of losses. The property so covered under
fire insurance policy must be clearly described. Property held in trust are not covered
under fire insurance policy.
When a house is insured under fire insurance policy, it does not cover
household goods. The following steps are observed while effecting fire insurance
policy:
I. Filling up Proposal Form:
A person desiring of taking a fire insurance policy has to select and contact a
fire insurance office. He will obtain a proposal form from the office and fill up the
proposal form. While filling up the proposal form of principles of good faith must be
observed and he has to fill up the form with utmost good faith.

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II. Associating Evidence of Responsibility:
The insurer will ascertain that the proposer is a respectable person and is
undertaking the policy in utmost good faith. This consideration should be viewed
before accepting the proposal. Since the insurance policy covers a high degree of
moral hazards, these considerations are to be kept in mind.
III. Survey of the Property:
The proposed property to be insured is surveyed by an expert called the
surveyor. The surveyor inspect the property and estimate the degree of risks involved
in such property. On the basis of the surveyor's report the insurer accepts or rejects the
policy.
IV. Accepting Proposal and Issuing of cover note:
After the receipt of surveyor's report, it is scrutinized to see whether risks is
acceptable or not. When the insurer is satisfied with regard to the report of the
surveyor, he accepts the proposal and gives intimation to the proposer accordingly.
The rate of premium is decided and on acceptance of appropriate premiums a cover
note is issued. A cover note is an interim policy till the final policy is issued. A cover
note serves as an evidence of insurance when losses to property are caused before the
issue of final policy but after the issue of cover note.
V. Issue of Final Policy:
After the issue of cover note, policy document is prepared. It is duly stamped
document which contains terms and conditions of the insurance. The policy serve as
an evidence of insurance between the insured and the insurer.

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HOME INSURANCE
Home insurance is the kind of property insurance that offers insurance
coverage to the homes. This insurance also gives liability protection (for accidents
occurring inside the home) and also property protection at the same time for a single
premium. This insurance covers the home,
its contents and personal possession.
If you have suffered damage to
your home or personal belongings as the
result of a natural disaster you likely have
many unanswered questions about how the
insurance settlement process works. Keep
in mind that it is a process that needs to be
worked through step-by-step, but there is
plenty of assistance available to you
through your insurance company and other
financial service providers.

INSURANCE SETTLEMENT PROCESS

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Property Insurance
Step 1: Adjusting Your Claim
When you are allowed back into your home contact your insurance company
to set up a meeting with a claims adjuster. An adjuster will inspect the damage to your
home and offer you a certain sum of money for repairs. The first check you get from
your insurance company is often an advance against the total settlement amount. It is
not the final payment.
If youre offered an on-the-spot settlement, you can accept the check right
away. Later on, if you find other damage, you can reopen the claim and file for an
additional amount. Most policies require claims to be filed within one year from the
date of disaster. Check with your state department of insurance.
When both the structure of your home and personal belongings are damaged,
you generally receive two separate checks from your insurance company, one for each
category of damage. You should also receive a separate check for additional living
expenses that you incur while your home is being renovated.
Step 2: What About My Mortgage?
If you have a mortgage on your house, the check for repairs will generally be
made out to both you and the mortgage lender. As a condition of granting a mortgage,
lenders usually require that they are named in the homeowners policy and that they
are a party to any insurance payments related to the structure.
The lender gets equal rights to the insurance check to ensure that the necessary
repairs are made to the property in which it has a significant financial interest. This
means that the mortgage company or bank will have to endorse the check. Lenders
generally put the money in an escrow account and pay for the repairs as the work is
completed. You should show the mortgage lender your contractors bid and let the
lender know how much the contractor wants up front to start the job. Your mortgage
company may want to inspect the finished job before releasing the funds for payment
to the contractor. Bank regulators have guidelines for lenders to follow after a major
disaster. If you have any questions contact your state banking department.

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Property Insurance
Step 3: How Do I Select a Contractor and Who Pays?
Hiring a reputable contractor to do repairs or construct a new home is critical.
Word of mouth is still one of the best ways to choose a contractor. Also check with the
area Home Builders Association, Better Business Bureau or Chamber of Commerce.
Make certain they are licensed and have adequate insurance coverage.
Dont become a victim of disaster fraud. After a natural disaster, professionals
often go from door-to-door in damaged neighborhoods, offering clean up or repair
services. Many of these business people are reputable. Others are not. The dishonest
ones may pocket payment without completing the job or use inferior materials and
perform shoddy work not up to code.

FLOOD INSURANCE

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Property Insurance

This is also another type of property insurance that offers insurance coverage
against any kind of damages suffered by the property in an event of a flood. Such type
of an insurance is not very common in India as it is often covered under the home
insurance and is not needed to separately adopt a policy as such.
WHY IS FLOOD INSURANCE IMPORTANT?
It is necessary to obtain flood insurance because flooding occurs more
frequently than you may imagine. Among the natural disasters that can happen,
flooding is the most common. Thus, it is best to consider it as a very real possibility.
Given that, protecting your assets with insurance formulated specifically to address
the water damage is needed.
Another reason why flood insurance must be sought is because most
homeowner insurance policies do not include damage by floods. It often needs to be
specified in order to apply. Also, some areas actually require homeowners to get flood
insurance. If the location of your property is prone to flooding, you must purchase a
policy before a mortgage loan can be approved.
Homes are often the biggest investments made by a person. With this in mind,
it is easy to grasp the significance as to why it needs to be protected by flood
insurance.

CLAIMS

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Property Insurance
1. Call your flood insurance agent right away, and be sure to have your insurance
company's name, policy number and contact information ready. If you cannot
stay in your home due to the extent of the damage, be sure to include a way for
you to be reached away from the house, such as a cell phone, shelter, or hotel
phone number
2. Make an appointment for an insurance adjuster to come look at the flood
damage. It should be done as soon as possible so that you can begin replacing
and repairing the damaged items.
3. Move any undamaged personal items away from the water to ensure that they
do not get wet. This can also help keep the area organised so that the flood
insurance adjuster can quickly see what has been destroyed.
4. Take pictures of the flooded areas of the home, as well as any items that got
wet. Include pictures of items that you plan on throwing away so that you can
be compensated for them. If you carpet is damaged and you need to throw it
out, cut a swatch from it so that you have an example of damage that a photo
might not reflect.
5. Make a list of items that were damaged due to the water. Include the name of
each product, price and date and location of the purchase. If you are not sure
of the exact information , either try to find receipts or estimates facts like
pricings.
6. Show the flood insurance adjuster any damage estimates that you may have
gotten from a contractor, since these will help in getting the correct
compensation to repair the damage.
7.

Obtain a proof of loss form from the adjuster, which will serve as your
certified flood insurance claim for damages. This form is required for the
national flood insurance program to pay your claim, and you must file it with
your insurance company no more than 60 days after the flood.

8. Tell your adjuster if you need at least some of the payment in advance so that
you can replace necessities that were lost in the flood. If you have accurate

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Property Insurance
records of what you lost, you are likely to get some money ahead of time. You
can also repair or replace items first, and then show the receipts to the adjuster.
Permanent or expensive repairs should wait until the flood insurance claim is
finished to ensure their costs will be compensate.
9. Sign and give your proof of loss form to your flood insurance company once
you come to an agreement on the payment to be made.
10. Keep in touch with your flood insurance agent until the process is complete so
that questions can be answered quickly.

BOILER INSURANCE
Boiler insurance is that form of property insurance that compensates for
damages suffered by your home boiler or any kind of electrical equipment of your
house with some exceptions attached to it.
Boiler insurance is a specific kind of insurance policy that covers items related
to the malfunction or breakdown of a furnace or boiler. This term arises from

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Property Insurance
heating technologies using hot water and steam to effectively heat an indoor space.
Regardless of changes in heating technology, boiler or heating systeminsurance may
still be a vibrant part of the residential or commercial insurance system in any of
several countries or regions of the world.
Some insurance professionals and others refer to boiler or furnace insurance as
mechanical breakdown coverage. This type of insurance can be listed under a more
general category of equipment coverage, especially in commercial boiler insurance
policies that cover heating
as part of a manufacturing
or other business process.
Boiler
similar

insurance

and

infrastructure

coverage can also apply to

residential or commercial
insurance where standard
heating systems keep the
inhabitants of a building
warm.
For those who are looking at what a boiler or furnace insurance policy
typically covers, the specifics of coverage vary from one policy to another. Boiler or
heating system insurance policies will typically cover the cost of repairing a
malfunctioning heating system. They may also cover any incidental water damage,
according to specific language in a policy, although water damage is often excluded in
policies. Comprehensive boiler insurance policies might cover the costs of creating
livability when a boiler breakdown compromises temperature in a building or indoor
space.
WHAT IS COVERED?
Home + Boiler Response offers you all the cover and support you'd receive with
boiler insurance, plus much more

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Property Insurance

Plumbing and drainage problems

Damage to - or failure of - your plumbingand drainage system (where internal

flooding or water damage is likely).

Blocked toilets and blocked external drains within the boundaries of your

home (where this can be fixed by jetting).

Internal electricity, gas and water supply problems Electricity failure of at least

one complete circuit, gas leaks and water supply system failure.
Security problems
Damage to - or failure of - external locks, external doors and external

windows.
Access problems
Loss of the only key that can gain access to the property - when it can't be

replaced and means the house cannot be accessed in the 'normal' way.
Pest problems
Infestations: wasp nests, hornet nests, house mice, field mice, rats and

cockroaches.
Roof damage
Sudden and unexpected damage to the roof of your properLIMIT OF
INDEMNITY
The

Limit

of

Indemnity

for

the

policy

shall

be:

Any One Claim: A maximum of 500 including VAT inclusive of labour.

Any One Period of Insurance: A maximum of 1,500 including VAT.
Unless otherwise shown below.
SECTION OF COVERS
Specific

Section

Exclusions

(Please note that this only shows

Section of Cover

Cover Provided

the significant exclusions and

reference should be made to the
policy wording for a definitive
list)

Primary Heating

Primary

Heating

system Any claim involving boilers over

where the system has failed or 15 years old or over 238,000 btu
broken down

net

input

(70

Kilowatt)

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Property Insurance

Excludes replacement of water

tanks,

cylinder

and

central

heating radiators
Subject to acceptance of a
claim under Section 5 of this
policy, where your boiler has
failed and is deemed by the
contractor

and

us

to

be

uneconomical to repair, we
shall

contribute
of

an

(upon

Boiler

production

original

Replacement

receipt for payment) a sum Any boiler over 15 years old

Contribution

including VAT for boilers:

a) up to 5 years old, of 500
b) between 5 years and 10
years

old,

300

c) between 11 years and 15

years old, of 150 towards the
cost

of

brand

new

replacement
SIGNIFICANT AND UNUSUAL EXCLUSIONS OR LIMITATIONS
The policy will exclude claims where the incident falls outside of the scope of
cover provided by the policy wording or where this is subject to a specific exclusion
or limitation. Please refer to the policy wording for full details. The most significant
or unusual exclusions or limitations are outlined below.

The policy covers emergency situations only. It does not cover circumstances
more properly handled by your Household Insurer.

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Property Insurance

Please note if you engage the services of a contractor direct, cover will not
apply. All claims must be reported to the Claims Helpline who will arrange to
send a contractor.

Where it is not possible to validate your claim at the time of initial

notification, you will be required to leave either credit or debit card details
which may be debited in the event that the cost of the call-out and any
subsequent repairs are not covered by this insurance.

DURATION OF THE CONTRACT

This is a monthly policy. It commenced from the date shown on the policy
schedule and will automatically renew for a further 1 month duration subject to you
paying the monthly premium in accordance with your agreed payment schedule.
Where payment is not made, cover will automatically be cancelled at the end of the 1
month period for which you have paid.

CANCELLATION

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Property Insurance
We wish you to be happy with the cover provided by your policy. However
you have the right to cancel the policy within 14 days of receiving the policy
documents without giving reason. If you chose to cancel, we will refund your
premium after first (at our discretion) charging for the cover provided from the date of
commencement of the contract until the date of cancellation and any helpline costs
incurred.

(3.4)RENTAL PROPERTY INSURANCE

The policy used for owners of rental properties is often known as "Dwelling
Fire" (DP-3 for houses and DP-3C for condos) although it actually covers several

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Property Insurance
perils beyond fires. It is important to note that dwelling policies are generally not as
broad as a full homeowners policy. The "a la carte" nature of dwelling polices,
however, means coverages can be customized for owners of rental properties.
Unlike other options, coverage for personal property and certain losses must
be specifically added to the dwelling policy. Discuss your needs with a qualified agent
to determine if a dwelling policy is right for you.
Coverages (DP-3 and DP-3C Dwelling)

Dwelling (Coverage A) - This is coverage for the costs to repair damages to

the rental property. Examples are damages to flooring, wall and ceiling
coverings, and fixtures such as cabinets, lighting, counter tops and built-in
appliances contained within the home.

Other Structures (Coverage B) - This is coverage for the costs to repair

damage to the additional structures on your property other than the home.
(Coverage B is for DP-3 and not DP-3C.)

Personal Property (Coverage C) - This is coverage for your personal

belongings located at the residence premises. Coverage is not provided for
your tenants personal belongings under this coverage.

Fair Rental Value (Coverage D) - This is coverage for loss of rents to you
should the dwelling you rent to others become uninhabitable, or unfit for its
normal use, due to a covered loss.

Premises Liability Insurance (Coverage L) - This coverage provides

protection if someone were to file a lawsuit against you, claiming bodily
injury or damaged property in connection with the insured location. Liability
can protect you in situations that may be unforeseen in addition to covering
certain defense costseven if the lawsuit filed against you is false, groundless
or fraudulent.

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Property Insurance

(3.5) METHODS OF PROPERTY INSURANCE

Property is insured in two main ways:

opens perils
named perils.
Open perils cover all the causes of loss not specifically excluded in the policy.
Common exclusions on open peril policies include damage resulting from
earthquakes, floods, nuclear incidents, acts of terrorism, and war.
Named perils require the actual cause of loss to be listed in the policy for
insurance to be provided. The more common named perils include such damagecausing events as fire, lightning, explosion, and theft.

(3.6)BENEFITS OF PROPERTY INSURANCE

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Property Insurance
Property insurance is basically required for the financial security, it provides
security in case of any loss suffered.
A major benefit of getting your property insured is that it covers the
replacement value.
The insurance pays off the losses caused by any unfortunate disaster or for the
particular cases listed on the policy.
Such insurance also covers up for the accommodation at the time of your
property being renovated.
Property insurance offers security and financial aid against any kind of
property risks like natural disaster, theft and fire.
Property insurance safeguards the financial future if certain damages occur to
your property or a third party files a negligence suit for damages suffered on
property.
Property insurance reimburse for damages due to fire, theft and unforeseen
calamities as well as situations that are specified in your policy.
Property insurance also includes protection for personal liability in situation
where someone, such as tenant or your neighbour is injured while visiting
your home or property.

(3.7)LIST OF COMPANIES PROVIDING PROPERTY

INSURANCE

Bajaj Allianz General Insurance

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Property Insurance

Bharti AXA General Insurance

HDFC ERGO General Insurance
ICICI Lombard General Insurance
IFFCO Tokio General Insurance
L & T General Insurance
Reliance General Insurance
Royal Sundaram General Insurance
SBI General Insurance
Tata AIG General Insurance

CHAPTER 4

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Property Insurance

(4.1) TERMS AND CONDITIONS OF

POLICY
(4.2) DOCUMENTS REQUIRED
(4.3) PREMIUM COVERAGE

(4.1)TERMS AND CONDITIONS OF POLICY

The first basic thing is that the property should be of the own i.e individuals
property whose opting for the policy.
The property insurance could be of varied types:
Fire

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Property Insurance

Flood
Natural disaster
Boilers
Home insurance

Thus the insurance taken by the person should specify the certain terms
and accordingly the policy should be purchased.
Now the next step is to specify the perils of the policy in the policy
determination the type of the policy perils must be specified
effectively.
The terms regarding the premium coverage.
The time period of the policy to be taken.
At last the value of the compensating money of the property at the time of
claiming i.e. actual cashes value or the replacement value.

(4.2)DOCUMENTS REQUIRED FOR THE PURCHASE

OF THE POLICY

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Property Insurance

Identity proof
o Pan card
o voters ID
Residential proof
o tax document
o light, telephone bill
In case of any kind of property insurance. Vehicle, house, commercial property
documents of that particular property is required like agreement of house or
commercial propertys document, vehicle document.
Bank statement of individual

Photograph of the individual

(4.3)PREMIUM COVERAGE
The coverage of premium is not an easy thing for an normal person in any policy.
The premium is of two types: Individual charge
Other law suits for (company paying for certain pre determined terms)
Read the policy
Read your policy to understand what is included. Your insurance premium is a
calculation of the individual coverage in your policy, and you should be aware of each

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Property Insurance
charge to know what you are paying for. You should received a policy booklet when
your policy started, however, you can contact your insurer to receive an additional
copy if you do not have one.
Aggregate of the total individual and policy coverage
Add the individual coverages together. Although each policy is different, property
insurance generally includes dwelling and contents coverage, liability protection and
medical payments to others. Each category has a separate charge and the price
depends on the limit and deductible for each. The dwelling section covers the
structure of the property in case it is damaged due to a covered peril such as fire.
Contents coverage insures your personal property in the event it is lost stolen or
damaged. The liability portion of your policy pays lawsuits if someone sues you for
injury that occurred at your premises and medical payments to other pays hospital
bills for people who incur harm at your property. Look in your policy or at your
statement and add each individual charge to get a total.
Subtraction of various discounts:
Subtract your discounts. Most insurers offers a variety of discounts to property
owners such as multiple policy, no smoking credit and senior discount. The multiple
policy discounts occur if you have multiple items insured with the same carrier, such
as your car and home. According to MNS money, over 23000 house fires occur each
year due to smoking cigarettes, and insurance carriers provide discounts if no one
smokes on the property. The senior discount is for individual over 55 years of age.
Review your policy to determine what discounts you have and talk to your agent to
determine if you qualify for any additional credits.
Checking of the in all credit score ull get
Factor in your credit score. Insurance companies review your credit rating to
determine your property insurance premium and call it an insurance score. The higher
your credit score, the less you willpay, insurance companies do not disclose their
specific formula for obtaining your insurance score.
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Property Insurance

Chapter 5

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Property Insurance

(5.1) CLAIM SETTLEMENT PROCEDURE

Consumers purchase insurance to return property to the condition enjoyed
before a loss occurred. Property insurance is purchased to protect a home, business or
other premises. Property insurance covers losses that result from theft, vandalism,
weather-related incidents, falling objects, fire or electrical malfunction. If you
experience a loss, you must follow certain claims-filing procedures to ensure your
property is repaired or replaced efficiently.
1. Police Report
The first step to take in filing a property claim is to contact the police and file
a report if you are the victim of a theft or vandalism. Contact emergency medical

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Property Insurance
personnel if an injury has occurred on the insured premises. A police report legally
establishes that a loss has occurred and strengthens the validity of your claim. In
many cases, a law enforcement official will come to the scene of the loss to take your
statement. Your insurance company will use the police report during the claims
process as evidence of your loss.
2. Contact Your Insurance Company
After you have filed a police report, call your insurance company to inform it
of the loss and file a claim. Do not wait to contact your company because many
property insurance policies have a time limit on claims filing. Ask your insurance
company questions regarding the loss such as whether the loss is covered or if you
have to pay a deductible. Your insurance company will open a claims file regarding
your loss. They will ask you several questions regarding the circumstances of the loss
and begin an investigation to determine the validity of your claim. If necessary, a
property adjuster will be sent to the insured premises to further investigate the loss
and to protect the premises from further damage. The time frame of this step varies
depending on the severity of the loss. Some property claims take days to investigate
while others take weeks or months.
3. Collect Information
Once your claim file is opened, the insurance company may periodically
contact you to ask more questions or request additional information regarding the
loss. It is important to collect as much information you can at the time of the loss to
ensure you give the insurance company accurate information. For example, if you are
the victim of a break in, make a detailed list of any items damaged or stolen and
include the property's value. If you have receipts of such items, make copies of them.
If you have a camera, consider taking pictures or recordings of any damages and give
them to your claims adjuster.
4. Settling Your Claim

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Property Insurance
The last step in the claims filing process is claims settlement. The settlement
amount will be based on either the actual cash value of the lost or damaged property
or the replacement cost of the property. Whether the company pays the actual cash
value or the cost to replace your property is determined when you purchase the policy.
Some property policies guarantee the replacement of property for an additional
premium. Once the insurance adjuster has completed the inspection of your property,
he will offer you a sum of money based on your property's value. You will receive a
separate payment for each category of damage. For instance, if the structure of your
home and the furniture within your home were damaged in a fire, your insurance
company will cut you a check to repair the home's structure and a check to replace
your damaged furniture.

(5.2)PRE- ACCIDENT SETTLEMENT CLAIM PROCEDURES

If you are in a car accident, contact the authorities right away, especially if there
are injuries or the accident causes property damage of any kind. When there are
damages, insurance companies typically have a claims procedure they follow to pay
for repair, medical bills or other expenses. While each company has its own methods,
there are some general commonalities among all accident claims procedures.
1. File Your Claim
According to Allstate Insurance, the first step after a crash is to file the claim. Do
this over the phone or online, or meet with a company representative. You'll need a lot
of information when you file your claim, including any police report details along

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Property Insurance
with insurance and other information from others involved in the accident, if
applicable. Even though your insurance company should have all the pertinent details
about your vehicle on file, you should still have your vehicle identification number
and the make and model of your auto on hand when filing your claim. You might also
need your driver's license information.
When filing a claim, disclose if there were any injuries in the accident. Have all
medical information handy, so you can provide it to your insurance company. Report
if there were any damages to other types of property as a result of the accident.

2. Coverage and Repairs

The claims process may vary
depending on whether the accident
is your fault. If not your fault, your
insurance company may do much
of the legwork to assure the other
driver's carrier handles your claim
quickly. If it is your fault, or the other driver does not have insurance, you will have to
go through your own carrier.
Every policy is different, as are insurance coverage deductibles. The deductible is
the amount you have to pay out of pocket before your insurance kicks in. After
reviewing your coverage with your agent, he will most likely schedule an estimate to
assess the damage to your vehicle. An agency-preferred mechanic may do this or you
might get a private estimate from one or more mechanics to submit to your carrier.

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Property Insurance
Once you have an estimate, your insurance provider will typically authorize repair
by an approved mechanic and pay the shop directly. In some cases, you might receive
a check to cover the estimated costs and have the option of working with the repair
business of your choice.
If you have rental car coverage, your insurance company either will reimburse you
for allowed costs while your vehicle is in for repair, or will pay the rental agency
directly.

3. Claims Against You

If the accident is your fault, your insurance company will work with the other
driver(s) to investigate the accident, get estimates and pay what you owe. You must
pay your deductible and any charges beyond your coverage.

(5.3)POST ACCIDENT SETTLEMENT CLAIM PROCEDURE

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Property Insurance
If you have been involved in a car accident and you need to file a claim against
your insurance company or another driver's insurance company, there are some things
you can do to help yourself through the process.
1. Contact your insurance agent as soon as possible when you know that you will
be filing a claim against the insurance company. The same is true if you were
involved in an accident and you expect that the other driver(s) may file a claim
against your insurance company.
2. Plan for the deductible amount you will be required to pay.If you are at fault
for the accident then check your policy or with your insurance agent to find
out how much your collision deductible will set you back. If the cost of the
repair exceeds the deductible, your insurance company will cover the
additional costs if they are within policy limits.If the accident was caused by
another driver, your insurance company will take the lead in getting the costs
of the repairs covered. They will use subrogation or act legally in your behalf
to recover the costs of your repairs including the deductible. If the driver who
caused the accident did not have insurance or was underinsured, you may have
to pay the collision deductible.
3. If your car requires repairs, you should expect that your vehicle is restored to
the condition it was in just before the accident.Your insurance company may
try to require you to take your car to a specific collision shop, if so the
insurance company must guarantee the shop's work and assess no extra cost to
you.The insurance company may be allowed to use used parts if your car is
not within the current model year. Check the written estimate to find out the
origin of the parts. If the estimate does not include details of the parts then
make them rewrite it for you. If new parts are readily available and the repair
shop is trying to fix your car with used parts, then insist they provide new
parts and tell them where to find the parts. For older cars finding new parts
may be impossible. Insist on OEM parts not generic parts. The insurance
company may be able to substitute generic parts for OEM parts if it is stated in
your policy. If the accident is not your fault stand strong in your insistence.

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Property Insurance
4. Try to get a rental car paid for by the insurance company. If another driver
damaged your car and you have a liability claim against their insurance, most
states require the other driver's insurance to pay the rental cost of a similar
vehicle during the repair of your vehicle. If your vehicle is totalled, they may
not be required to pay for a rental car, prior to you receiving final settlement,
but insist anyway. It is in their best interest to avoid causing you added
expense. If they are not willing to cooperate it is one more reason to seek legal
council. If the accident is your fault, the only way you will be able to receive
reimbursement for a rental vehicle is if you have rental car insurance covered
in your policy.
5. Once you have a settlement offer from the insurance company make sure that
the amount will cover the damage bill. Try to first talk to the adjuster if you do
not agree with the settlement offer. If you cannot come to an agreement, then
talk to the claims supervisor. If you still cannot agree talk to your insurance
agent if the accident was your fault. If the accident was another driver's fault
you can either consult with an attorney or take the other driver to small claims
court. Most states have a small claims maximum in the range or $3000-$5000,
so first check with the county court where the accident occurred to find out the
limit. Once you accept the settlement you typically have at least 30 days to
report either a problem with the settlement covering the expenses or additional
damage caused by the accident that the service shop did not repair.

ANNEXURE

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QUESTIONNAIRE
Q.1. what are the insurances policies that cover property?

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Property Insurance
Ans. Insurance policies like standard fire and special perils policy,
marine(cargo), marine(hull), engineering and burglary insurance policies
covers various types of property.
Q.2. how do we get the valuation of our property?
Ans. The contents are covered on the market value i.e. the cost of buying
a similar new item after deducting appropriate depreciation on the basis
of the age of the item. This includes house appliances, furniture, jeweller,
personal effects and miscellaneous items.
Q.3. What if I sell the property during the insured property?
Ans. You can cancel the policy and get back the premium on pro-rata
basis.
Q.4. How do you differentiate between riots and terrorism cover in
case of home policy?
Ans. Riot refers to the violent disturbance of the public peace by three
more persons assembled for a common purpose. Whereas terrorism
activity means use of the force or the violence harming human life or
property, with the objective of pursuing personal or vested interests.
Q.5. What types of risks are covered under fire policy?

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Property Insurance
Ans. Fire, lightening, explosion/implosion, aircraft damage, storm,
cyclone, riot, strike, impact damage, landside, bush fire, e.t.c

Q.6. If someone has already taken out the home insurance policy
whether he has to take the separate flood insurance policy for
protection from flood?
Ans. Yes, because home insurance policy does not pay for flood.
Q.7. What factors are considered while setting the premium?
Ans. Number of factors to determine the basic risks of your property. The
primary factors in setting property insurance premiums include the type
of building structure, the presence or absence of protective safety
measures measures and the proximately of property to other high- risk
areas.
Q.8. if three people share an apartment can each one take a separate
home insurance policy?
Ans. Yes, they can but for their part of the asset.

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CONCLUSION

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Property Insurance
With the overall study of the property insurance itis concluded that property
insurance is one of the ,majorly used or issued policy by the non life insurance
companies and its one of the largely sold policy. Under property insurance the major
aspects of insurance is not only the property where we life or any other property it
refers to the any property of the individual it could be vehicle, jewellery commercial
property or the business property.
One of the other important things in property insurance is that the policy
determination could be on the actual value or reimbursing value of the certain
property.
Not only the insurance companies now-a-days set their R&D department with
an aim to come up with more and more ever changing ans challenging situation to set
up their new policies in order to face the people in the market.
The insurance companies are mainly calculating the risk associated with any
property which they are being insuring because at the time of settlement of claim of
the policy, the company should not face any problem by over risky property insured
by them.
After the attack in New-York on trade centre we are much more sure about the
insurance to be done for the propertys after all there are major activities that being
carried out over.
Thus therefore lastly concluding the part of property insurance by saying that
its essential to cover the policy of property because its importance is also as important
as the life of any individual.

BIBLIOGRAPHY
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Property Insurance

Bibliography
I have collected the information from the following sources:-

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Property Insurance
1.PRIMARY visit:

Visit to IIFCO-TOKIO

2.WEBSITES:

www.iifcotokio.com
www.moneycontrol.com
www.google.com

3.BOOKS:
Innovations on banking and insurance

4.MAGAZINES:

The Indian bankers

Insurance booming sector

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