Benefits of Insurance Property and How Much Premium Must be Paid

What are the advantages of property insurance?

Besides being compensated in case of fire, natural disaster, or theft, you don’t have to pay architect or surveyor fees and consultants when renovating buildings.

With property insurance, you can live in peace. You also don’t have to worry when you leave your home for a long time, because everything is protected.

How much is the premium?

The amount of the premium for property insurance is usually influenced by the location and use of the building. For example, the condition of the building, whether it is inhabited or no longer has residents, the condition of the environment in which it is located, the losses due to theft or demolition that have occurred previously, the type and value of the property that will be insured, and whether or not the building has been flooded. Therefore, it is very likely that your insurance application will be rejected if you live in an area that floods every year.

The quality of the building also determines the cheap or high premium that must be paid. In property insurance, buildings are divided into three classes. The first class is fireproof, the second class is relatively fire-resistant, and the third class tends to be flammable.

The premium price for the first class is cheaper and the third class is the most expensive. It should be noted that if your home is made of 100% cardboard materials, it is likely that your insurance application will be rejected. Before setting the premium, the insurance company will carefully examine the property to determine the quality of its construction.