UNIT 1 - Property Insurance

SABU LAMA
UNIT 1: PROPERTY INSURANCE
1. Define property insurance.

Property insurance is the insurance policy which provides protection against the risk of
loss and damage of property. Here, property means anything that is owned by a person or
the company.
2. What is peril? Name any four perils of property insurance.
Perils are the causes of loss. Any four types of peril in property insurance are as follows:
 Fire
 Theft
 Flood
 Earthquake
3. What is hazard? Mention any two differences between peril and hazard.
Hazard is the condition or situation that increases the chance of loss.
Hazard Peril
 Hazard is the condition or situation  Peril is the cause of loss.
that increases the chance of loss.
 Example of hazard is defective  Example of peril is wire
wiring.
4. What is exclusion?
Some of the risk, loss, hazard, and /or perils which are not covered by insurance policy
are called exclusion. Similarly, exclusion differs from product to product.
5. List out any two risks excluded from property insurance.

The risk that are excluded from property insurance are as follows:
 Accident due to racing is not covered in vehicle insurance
 Loss of valuable ornaments in building is not covered by fire insurance
6. What is personal life insurance?
The insurance which provides protection against loss and damages to personal property.
Personal property refers to property that belongs to individual person.
7. What is explosion and impulsion?

When a boiler burns and explodes due to external causes, it is called explosion and on
those situation where boiler explodes due to internal causes is called impulsion.
8. What is commercial property insurance?

Commercial property insurance is that insurance that provides protection against loss and
damages of business property. It is the property that belongs to commercial business.
Example are: hotel, school, hospitals
9. What is home owner insurance?

Homeowner insurance is the type of insurance that provides protection against loss and
damages of owner’s property, owner’s belongingness, additional structure, liability risk
from the covered perils such as fire, lightning, riots, vandalism, flood, earthquake etc.
10. Explain the types of property insurance.

Anything that is owned by a person or company is called property. For example: land,
building, equipment, furniture etc. property insurance is a type of insurance that provides
financial protection against loss and damages of property from various loss such as fire,
theft and natural disaster etc.
Some of the types of property insurance are as follows:
 Personal property insurance: it is a type of insurance th at provides protection
against loss and damages of personal property and personal belongingness such
as clothes, jwellery, electronic devices and other possession from theft, fire, and
natural disaster.
 Commercial property insurance: those insurance that provides protection against
loss and damages of business or organizational property. It provides coverage for
commercial building and structure as well as content inside such as equipment
and inventory. It helps them to protect their assets and ensures they can continue
to operate business following loss
 Rental property insurance: those insurance that provides protection against loss
and damages of personal property of tenants caused by theft, fire and any other
natural disaster that occurs within its rental property.
 Homeowner insurance: it is a type of insurance that provides protection against
loss and damages of owner’s property, owner’s belonginess, tenant’s belonginess
and additional structure from covered perils, such as fire, lightening, riots,
vandalism, earthquake, aircraft etc.
 Aviation insurance: It is a type of insurance policy that provides protection
against loss and damages of an aircraft. It covers such as ground but not in flight,
flight but not in motion and motion. The passenger bodily injury and death risk
are also covered by aviation insurance.
 Motor/ Auto insurance: It is a type of insurance policy that provides protection
against loss and damage of vehicles such as car, motorbike, jeep etc.
 Marine insurance: it is a type of insurance policy that provides protection against
loss and damage of ships, cargo, terminals, and any transport or cargo by which
property is transferred, acquired or held between the point of origin and final
destination.
 Flood and earthquake insurance: It is a type of insurance that provides protection
against loss and damages of property caused by flood and earthquake.
11. What is property insurance. Explain the risk covered by property insurance. Also explain
the risk not covered by property insurance.
Property insurance is a type of insurance that provides against loss and damages of
property from various risk such as fire, theft and natural disaster.
Some of the perils covered by property insurance are as follows:
 Fire: property insurance covers for the damage and loss caused by fire. In case,
fire breaks at home, property insurance can help to cover the cost of repair or
replacement of any damages caused by fire.
 Natural disaster: it also covers loss and damages caused by natural disaster such
as hurricanes, flood, earthquake, volcanoes. If earthquake damages insured home,
property insurance can help to pay for the cost of repairing those items
 Theft: It also covers for theft of personal property and damage caused by break-in.
If a thief steals any personal item such as jwelleries, electronic devices, property
insurance can help to pay for the cost of replacing those items.
Some of the exclusions of property Insurance are as follows:
 War or military action: the damage from military conflict is not covered by
property insurance. If a house get damaged by during war, it is not covered by
property insurance.
 Government intervention or action: The damage caused by government action
is not covered by any insurance policy. For example, if government demolish
house for road expansion, any damage caused thereof is not indemnified by
insurance companies.
 Damages resulting from defective construction
 Antiques, cash, painting and work of art are excluded from property insurance
due to the coverage of their unique and valuable nature
 Intellectual property are also under exclusion
12. Explain about the commercial property insurance.
Commercial property insurance is a type of insurance that provides coverage for

buildings, structures, and other properties used in a business. This type of insurance is
designed to protect a business from financial losses resulting from damage or loss of its
property. This insurance cover risks such as fire, theft, natural disasters, and other types
of damages.
In the extent of covered loss, a commercial property insurance policy typically provides
reimbursement for the cost of repairing or replacing the damage or stolen property. The
amount of coverage that that a business is insured can vary depending on the size and
types of property being insured as well as the business exposure to risk.
The specific risk that are not covered by commercial property insurance are as follows:
•Loss or damages caused by war, intentional act
•Loss or damage caused by government action such as seizure or confiscation
The commercial property insurance can help to ensure that business has adequate
coverage for its property and can help to avoid uncertain event of loss.
13. Explain about the home owner policy.
Homeowner policy is a type of insurance that provides coverage for a policyholders

home and personal property. The main purpose of homeowner insurance is to provide
financial protection against loss and damage resulting from various risks such as fire,
theft, natural disaster and other types of damage.
Homeowner insurance is that type of insurance which provides protection against loss,
damage and theft risk of the home owner from covered risk like as fire, strike, vandalism,
flood, earthquake, accident of vehicle, aircraft. In additional, personal belongingness
losses, tenant belongingness, additional structure and liability risk is also covered by
home owner insurance. This insurance policy ensures policyholders has adequate
coverage for their home and personal property and can help to avoid uncertainties.
The concept of homeowner insurance can be clearly explained from its types which are
enlisted below:
•HO1: cover the risk of dwelling only (examples: pillar and beam)
•HO2: risk of dwelling and personal property

•HO3: dwelling, personal belongingness and liability
•HO4: rental property insurance, personal belonging of tenant
•HO5: cover the risk of new house with new unique design
• HO6: condo insurance which cover the risk of flat and apartments including property
belongingness, additional structure, as combination of various risks are combined together
•HO7: cover risks of HO3 for mobile house
•HO8: cover risk which are unique in nature. Those risk that are different from
conventional risk that are listed below. To cover those risks, HO8 is referred. It is also
called customized insurance policy.

UNIT 1 - Property Insurance

Uploaded by

Copyright:

Available Formats

UNIT 1 - Property Insurance

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

UNIT 1 - Property Insurance

Uploaded by

Copyright:

Available Formats

SABU LAMA

UNIT 1: PROPERTY INSURANCE

1. Define property insurance.

5. List out any two risks excluded from property insurance.

7. What is explosion and impulsion?

8. What is commercial property insurance?

9. What is home owner insurance?

10. Explain the types of property insurance.

Some of the exclusions of property Insurance are as follows:

12. Explain about the commercial property insurance.

Commercial property insurance is a type of insurance that provides coverage for

•Loss or damages caused by war, intentional act

•Loss or damage caused by government action such as seizure or confiscation

13. Explain about the home owner policy.

Homeowner policy is a type of insurance that provides coverage for a policyholders

•HO2: risk of dwelling and personal property

•HO4: rental property insurance, personal belonging of tenant

•HO7: cover risks of HO3 for mobile house

You might also like