What is Property Insurance?
When you are a business owner, you will have assets and physical property, which is essential for you to trade. Because your property is an integral part of your business, you should have protection where a multitude of risks or perils could threaten, cause damage or cause complete destruction to your business. Property Insurance covers you for loss or damage to your physical business assets, such as building, plant and equipment and stock, in the event of an incident occurring.
Why is Property Insurance Important?
Property insurance (also known as Material Damage) is a name for a policy that provides insurance protection and coverage for business owners and property owners. In the event of damage to property caused by a number of risks such as fire, flood, natural disasters or crime (theft, burglary, or vandalism). Property insurance can reimburse the costs needed to replace the property.
What does Property Insurance Cover?
Property insurance can include a number of risk exposures like the following:
- Fire
- Lightening
- Explosion
- Weather-related losses such as windstorms, hail, snow, ice
- Burglary/theft
- Flood
- Natural disasters, such as Earthquake tsunamis, volcanic activity, hydrothermal activity, geothermal activity or subterranean fire
The insurance company will assess the risks associated with owning property in a specific area, neighbourhood, or business district. They conduct a comprehensive analysis of the perils and risks that your property is exposed to.
If you think your property insurance policy does not cover the specific risk that your property is exposed to, your Financial Adviser is able to canvass the insurance market for a provider that may consider extending your policy for that specific coverage.
Most Property insurance policies have exclusions that you need to be aware of, for example, widescale extreme events like war and other acts of terrorism.
At Insurance Advisernet, we can provide property insurance coverage for SMEs. Talk to our expert insurance brokers today and get the best policy that will protect you from major financial loss following an event like damage to or destruction of your property.
Frequently Asked Questions
Which insurance is best for a property?
Property insurance comes in many forms and can be tailored to a business owner's individual needs. This means depending on the cost, coverage, and preferred insurance provider. Your policy can be different from the policy of another business owner or property owner. Generally, your insurance plan will take into account factors like location, the value of property and assets (actual, repair, and replacement costs), and risks associated with having property or operating a business in that area.
What is the importance of property insurance?
SMEs in New Zealand can benefit from the protection that property insurance provides. Property insurance can cover a range of insurable risks and perils for business owners that have a property like a factory, retail store, warehouse, plant and equipment in cases where fire, storm, flood, crime or natural disaster events cause damage and/or destruction to their property.
What is the difference between homeowners insurance and property insurance in New Zealand?
Property insurance (also known as Material Damage) is a term used for business insurance covering the physical assets and physical property of a business. Homeowners insurance is a type of property insurance that is designed for owners of private residential properties.
What is not covered by property insurance in New Zealand?
Insurance Policies contain exclusions. These are loss types that are not insured under an insurance contract. Common exclusions that appear in a typical property insurance policy can include intentional damage, neglect of property, rust, rot, mould, general wear and tear or extreme events like nuclear explosions, wars, and other forms of terrorism. To be sure you have the right cover in place, check with your insurance adviser or provider about the specific exclusions in your policy.
What are the basic types of coverage needed?
Generally, property insurance shields you and your business from the effects of a broad range of insurable events like fire, lightning, explosions, weather-related losses such as windstorms, hail, snow, ice, flood, burglary or theft, vandalism and natural disasters.
