Author Topic: Property Insurance  (Read 1195 times)

Reyed Mia (Apprentice, DIU)

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Property Insurance
« on: June 12, 2017, 08:18:10 PM »
Property Insurance

Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance. Property is insured in two main ways—open perils and named perils.

Open perils cover all the causes of loss not specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism, and war. Named perils require the actual cause of loss to be listed in the policy for insurance to be provided. The more common named perils include such damage-causing events as fire, lightning, explosion, and theft.

Types of Coverage

There are the three types of insurance coverage. Replacement cost coverage pays the cost of repairing or replacing your property with like kind & quality regardless of depreciation or appreciation. Premiums for this type of coverage are based on replacement cost values, and not based on actual cash value.  Actual cash value coverage provides for replacement cost minus depreciation. Extended replacement cost will pay over the coverage limit if the costs for construction have increased. This generally will not exceed 25% of the limit. When you obtain an insurance policy, the limit is the maximum amount of benefit the insurance company will pay for a given situation or occurrence. Limits also include the ages below or above what an insurance company will not issue a new policy or continue a policy.

Fire insurance

Fire insurance business  is governed by the All Fire Tariff that lays down the terms of coverage, the premium rates and the conditions of the fire policy. The fire insurance policy has been renamed as "Standard Fire and Special Perils Policy". The risks covered are as follows:

Dwellings, offices, shops, hospitals:
Industrial, manufacturing risks
Utilities located outside industrial/manufacturing risks
Machinery and accessories
Storage risks outside the compound of industrial risks
Tank farms/gas holders located outside the compound of industrial risks

Perils covered

The following causes of loss are covered:

Explosion, implosion
Aircraft damage
Riot, strike
Storm, cyclone, typhoon, tempest, hurricane, tornado, flood & inundation.
Impact damage
Malicious damage
Subsidence, landslide
Bursting or overflowing of tanks
Missile testing operations
Bush fire


The following are excluded from insurance coverage:

Loss or damage caused by war, civil war, and kindred perils
Loss or damage caused by nuclear activity
Loss or damage to the stocks in cold storage caused by change in temperature
Loss or damage due to over-running of electric and/or electronic machines

Claims In the event of a fire loss covered under the fire insurance policy, the insured shall immediately give notice thereof to the insurance company. Within 15 days of the occurrence of such loss the insured should submit a claim in writing giving the details of damages and their estimated values. Details of other insurances on the same property should also be declared.
Reyed Mia (Apprentice, DIU)
Asst. Administrative Officer and Apprentice
Daffodil International University
102/1, Shukrabad, Mirpur Road, Dhanmondi, Dhaka-1207.
Cell: +8801671-041005, +8801812-176600