Property insurance is a type of insurance loss that protects your property or assets in the form of houses (buildings) and its contents. This type of insurance is divided into two categories; Fire insurance and all risk insurance risks.

Maximum protection

The house along with its contents is a valuable property with the largest financial value. These assets must receive maximum protection against all types of risks caused by damage, loss, or other disorders.


Failure to prepare protection for your valuable assets can lead to losses that can seriously exacerbate your financial situation. What's more if you don't have a large amount of emergency reserve funds.


The following are some items covered by property insurance, both in the main and additional benefits.

  • Building
  • Jewelry and other valuables
  • Household appliances and furniture such as sofas, tables, televisions, air conditioning, DVD players, or other electronic devices
  • Third party legal obligations
  • Protection for personal accidents caused by damage to the building incident
  • Other additional benefits.

6 Reasons why property insurance is important

There are at least six (6) clear reasons why property insurance is very important to you. Below is elaboration.


1. This protects the house and its contents

The main function of property insurance is to offer protection for your home and its contents.


Protection for your property covers all types of damage risk caused by fires, natural disasters, or other factors. It also includes the risk of loss due to theft or other criminal actions, as well as the type of risk of other disorders.


2. It offers a sense of security

Property insurance protection against uncertain risks such as fire, natural disasters, theft, and so on must definitely give you peace of mind and confidence as an asset owner.


If the risk occurs and you suffer losses, insurance companies will definitely provide appropriate compensation.


3. have a low cost

For the standard Indonesian fires policy, the average premium value applied is very low, which is around 0.50 / 00 of the total asset value.


For example, if you have a house along with its contents with a total value of IDR 1 billion, the premium you need to pay is 0.50 / 00 times 1,000,000,000, which is IDR 500,000 per year.


Pay attention to the ratio between the scope and premium value. You only need to pay a very low premium amount to get maximum protection for your very valuable property.


Therefore, only at a small cost, your property assets are well protected.


4. This compensates for damage or loss of buildings or property

Property insurance provides compensation for your property damage or loss. The term for compensation is that the loss is not caused by your own negligence.


5. This makes financial disturbances go away

Imagine if the entire building is your house and the contents are burned. You will definitely experience large amounts of financial losses. The cost of repairs and replacement for all these properties must be substantial.


Property insurance provides compensation for loss, so your financial condition is still protected.


6. It includes a temporary place to stay

If the risk of loss occurs and causes you to lose home, property insurance can give you a temporary place to stay for free or provide compensation to you for a temporary rental fee.


Reduce risk

If you already know the reason why property insurance is important, why do you still take risks leaving your property without protection?


Although the risk of losses may not occur on your property, property insurance will succeed in minimizing the impact of the risk.


You can then have a peaceful and pleasant life.