5 Reasons for the Importance of Owning Property Insurance

5 Reasons for the Importance of Owning Property Insurance

03 July 2019
  Category : Article

5 Reasons for the Importance of Owning Property Insurance

Reasons for the Importance of Owning Property Insurance

Property insurance is a type of protection of property assets such as houses, apartments, warehouses, and offices. The purpose of Property Insurance is to anticipate financial losses due to unexpected events that have befallen property. Unexpected events in the form of floods, earthquakes, tsunamis, and things due to human negligence such as fire, explosion, and riots.

There are 5 basic reasons for the importance of having property insurance to protect your assets, including:

1. Protecting House Buildings and Their Contents

The main function of property insurance is to guarantee the protection of your home or occupancy and its contents.
Property Asset You will get a guarantee of protection from various risks of fire damage, natural disasters, and other causes of damage. This can be extended by guaranteeing the risk of loss due to theft or other crimes, as well as guarantees of risks from other disturbances.

2. Providing security

This property insurance protection can also be used to deal with risks of uncertain losses, such as fire, natural disasters, theft, or other risks. This certainly will provide peace and security and confidence in you as an asset owner. If the various risks occur and you experience a loss, there will be an appropriate replacement from the insurance company.

3. Low Cost

in the type of standard fire insurance policy in Indonesia, the value of insurance premiums charged is very small, which is 0.0294% of the total value of assets. For example, you have a house with its contents worth Rp. 1 billion. The premium you have to pay is only Rp. 294,000

4. Replacing property that is experiencing damage

Property insurance provides reimbursement of costs due to damage or loss of your property. The reimbursement requirement is that the loss does not occur on your own negligence or in accordance with the provisions that apply in the policy agreement.

5. Avoiding Financial Problems

If the building of your house and all its contents are burned, you will experience huge financial losses. Of course the costs that you will spend to repair and replace all these properties are not small. Property insurance provides compensation for these losses so that you can still protect your financial situation.

Video The benefits of having property insurance

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