Can We Insure a Building?

Posted on: Sep 20, 2024 | 3 mins | Written by: HDFC ERGO Team

Can We Insure a Building?

Yes, it is possible to insure an entire building. You can do so with the help of a building insurance policy from a leading insurer like HDFC Ergo. Take a look at this article to learn more about the components of this coverage and why you need it.

Features of building insurance

Let’s take a detailed look at the beneficial features of a property insurance policy that you can buy to protect the entire building:

1. Outer structure coverage

One of the main covers available under a building insurance plan is the structure coverage. You get protection for the exterior components of the house such as the walls, roofs, foundation, floors and other fixtures that are permanently attached to the building. This is crucial coverage that helps you to keep the place safe at all times.

2. Additional structure coverage

Whether you have a swimming pool on your property or you have a detached garage, you can get coverage for these areas as well when you buy a building insurance policy. This is another very handy benefit offered by the comprehensive property plans.

3. Possession coverage

This cover is similar to what you get in a standard homeowners insurance plan. You get coverage for the items inside the property such as the expensive furniture and appliances. If your home items are destroyed in any covered peril, the insurance provider will compensate you for the damages.

4. Perils coverage

This is another cover similar to those available under the regular home insurance plans. You get coverage from perils such as fire, theft, natural disasters and riots. If the structure of the building is damaged due to any of the perils listed, the insurance provider will compensate you for the damages. You can use the compensation to fix the house and replace the damaged items. This is, therefore, one of the most important features of a building insurance policy.

5. Loss of use coverage

If your building becomes unfit to inhabit following a natural or manmade disaster, you will have to temporarily shift out till the place is repaired and restored to its past glory. You will have to stay in temporary accommodation till then. The insurance provider will pay the rent of the new place while your building gets repaired.

The bottom line

As you can see from the points mentioned above, a building insurance plan is highly beneficial. Whether you own a commercial or personal property, getting building insurance is a wise idea. The covers available in such policies are quite different from those offered by the standard homeowners' or renters insurance plans, so read the policy prospectus carefully and understand how the coverage will help you.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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