Property insurance

Property insurance is a form of insurance that protects the building and its contents in a insurance policy, one type of property insurance is insurance for the home. But for the contents of the building, insurance exclude goods moveable and portable, such as portable electronic equipment, laptops, cell phones, cars and money or jewelry. These items when needed there own insurance products.

Basic home and contents insurance cover, usually covered in the Standard Fire Insurance Policy which covers the four risk of loss as follows: Fire (risk of fire due to lightning or fire risk of fire due to lightning or lightning), Explotion (risk of fire rather than by a bomb explosion),
Airplane (risk of fire due to hit the aircraft, baggage or cargo). Service Insurance Companies typically set a standard for general insurance premiums residence of 0:58 per mile per year from the estimated value of the insured property.

Against the value of the property and its contents to be insured, the insurance company will do an estimate first. Estimates are usually based on price when new was built, rather than the acquisition value or market price. In the assessment of property called value redevelopment (rain statement value) is defined as the cost to replace, repair, or rebuild the property to a condition substantially equal to but not better or more extensive than new condition. In this estimation is not taken into account the price of land and buildings under ground (substructure) such as foundations and basements are not counted.

Besides the risk of fire insurance coverage can be expanded up to the risk of natural disasters such as earthquakes, floods, tsunamis, volcanic eruptions, to theft with violence, riots, civil commotion, acts of terrorism and sabotage the so-called all risk property policy.

High and low premiums specified property type, building structure and its location, size of the risk which would to born. Building  wood will burn.

Property All Risks Insurance

Covers everything except listed exclusions

Property All Risks is a very “famoust” name amongst other insurance types, because it covers everything (All Risks) except only a few numbers of risks listed as exclusions

Typical Policy Inclusions

·   Coverage for Riots, Strikes, Malicious Damage and Civil Commotions

·   Coverage for Typhoon, Storm, Flood and Water Damage

·   Coverage for Earthquake, Volcanic Eruption and Tsunami

·   Coverage for Landslide and Subsidence

Principal Exclusions

·   War, civil war, terrorism, nuclear, radioactive

·   Delay, loss of market or consequential loss

·   Dishonesty, fraudulent act

·   Mechanical breakdown, overheating of boilers

·   Wear and tear, inherent vice

Pollution or contamination

Property Exclusions

·   Property being worked upon / in course of construction

·   Property in transit, road vehicles, watercraft, aircraft

·   Jewelry, precious stone, work of art

·   Timber, crops, animal, bird, fish

Land, roads, railways, canals, rigs, well, pipelines, bridges

Additional Benefits (Clauses)

• All Other Contents
• Average Relief (85%)
• Architects, Surveyors and Consulting Engineers
• Capital addition (10% of TSI)
• Civil Authorities
• Claims Preparation
• Fire Brigades Charges
• Fire Extinguishing Costs
• Impact by own vehicle
• Internal Removal
• Outbuilding
• Public Authorities
• Removal of Debris
• Reinstatement value
• Temporary Removal
• …………..
• Etc

Deductibles

Deductible is your own risk, amount that will be deducted from your claim payable, for each risks or circumstances usually set out below:

-    Fire, Lightning, Explosion, Impact of Aircraft and Smoke : NIL

-    Riots, Strikes, Malicious Damage and Civil Commotions : 10% of claim, min Rp10,000,000

-    Typhoon, Storm, Flood and Water Damage : 10% of claim

-    Landslide and subsidence : 10% of claim

-    Earthquake, Volcanic Eruption and Tsunami : 2.5% of TSI

-    Others : $ 1.000

Property All Risks

In summary, It covers ………

•Fire • Lightning •Explosion • Impact of Aircraft •Riots • Strikes •Malicious act • Civil Commotions •Earthquake • Volcanic Eruption •Tsunami • Typhoon, Storm •Flood, Water Damage • Burglary •Landslide • Impact of vehicle •Impact of falling trees • Architects Fees •Fire Brigades Charges • Fire Extinguishing Expenses •Removal of Debris   • Claim Preparation Costs •Other accidental damages •and many more

Business Interruption – optional cover 

It Covers Loss of Gross Profit if during the period of insurance the business carried on by the Insured at the premises specified in the Schedule is interrupted or interfered with in consequence of loss destruction or damage indemnifiable under Section I (Property Damage)

•Gross Profit          : Sales – Variable Costs – Savings (Net Profit + Fixed Costs)

•Gross Rental        : Rental – Savings

•Indemnity Period   : 12 to 24 months

Machinery Breakdown – optional cover with sub limit

It Covers any unforeseen, sudden and accidental physical loss, or damage from causes such as defects in casting and material, faulty design, faults at workshop or in erection, bad workmanship, lack of skill, carelessness, shortage of water in boilers, physical explosion, tearing apart on account of centrifugal force, short circuit, storm or from any other cause not specifically excluded in the General or Special Exclusions hereinafter in a manner necessitating repair or replacement.

Occupation

Every kind of occupation or business can be insured under Property/Industrial All Risks (PAR/IAR) usually with high value to meet the minimum premium required.

•Factory • Industrial or Manufacturing Risks •Warehouses • Ofices •Shophouses • Schools •Hospitals• Hotels •Malls • Container Terminal •Ship Yard • Entertainment • High rise building •Dwelling House •and Others