Why Property Insurance Matters
For most Indians, buying property is more than just a financial investment—it’s an emotional milestone. But what many forget is that this valuable asset is exposed to risks such as fire, theft, floods, and earthquakes. Property insurance ensures protection against these uncertainties.
India has witnessed numerous events that underline its importance. For example, the 2015 Chennai floods caused damages worth thousands of crores to homes and commercial spaces, many of which could have been covered under proper insurance. Similarly, recent earthquakes in northern states remind us of vulnerabilities.
Advantages in Detail
- Financial Protection: Insurance prevents property owners from dipping into life savings during unexpected damages.
- Risk Coverage Across Categories: From natural calamities (earthquakes, floods, cyclones) to man-made hazards (fire, theft, riots), insurance ensures all-round protection.
- Security for Home Loans: Many banks prefer financing insured properties, which reduces risk for both lender and borrower.
- Peace of Mind for Investors: NRIs investing in Indian real estate can relax knowing their properties are safeguarded even in their absence.
- Business Continuity: In the case of commercial assets, quick compensation ensures operations don’t stall for long.
Growing Adoption
With rising awareness, more buyers and developers are opting for property insurance. Large residential societies now often include group insurance for buildings, while businesses consider it part of operational risk management. In the coming years, insurance is expected to become a standard inclusion in property ownership.
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