Articles
Hazard Insurance Policies for Ultra Luxurious Residential Property
by Avani Rai THE 42If you want to safeguard your ultra-luxurious residential
property against any form of hazards, hazard insurance should be your
choice. It covers the property owner against any colossal property damages
under reasons like storm, earthquake, fire and other natural calamities.
The function of hazard insurance policy is covering a property. It
provides compensation to an owner of a luxury residential in Kolkata,
for example, when a particular natural calamity strikes.
This is not a common type of insurance- hence, most of the times
people misinterpret hazard insurance policies. Let us have a look at the
different advantages of this insurance:
a. Homeowners insurance is
different
Homeowners insurance generally cover some of these damages only.
However, cover against many of the damages caused by natural calamities are not
warranted under a homeowner’s insurance.
Hazard insurance is different- it covers almost every aspect of
damage that a property might face. Apart from natural calamities, hazard
insurance covers against:
- Vandalism
- Explosion
- Vandalism
- Lightening
and many more...
- Variants
of hazard insurance
You will find different types of hazard insurance in the market-
you need to decide which one you want to go for.
- The
basic hazard insurance provides cover against only some kinds of
damage. There are many specific physical damages that a basic hazard
insurance does not compensate for.
- The
extra protection insurance can be obtained for such damages by
paying more money on the coverage while necessary. For example, if you
need a cover against earthquake to compensate for the physical damages
that you property may suffer due to this, you should go for the extra
protection one.
- You
can club it with your monthly mortgage
Most of the mortgage lenders will agree with this because they
generally want to protect the property they are investing in. So, apart from
the other insurance, the mortgage lenders suggest you a hazard insurance too.
Most of such lenders’ policies include an option where you can
club the payment of the insurance premium and mortgage monthly dues in one single
payment. This makes it much easier to keep track of your monthly payments.
We have now understood the advantages of hazard insurance
properly. Everything has its downside too. There are some disadvantages of this
insurance as well, to be honest. Let us have a look at those:
a. a. Falling number of insurance
providers
This insurance is quite popular with homeowners, true. However,
the number of organizations who provide this insurance is now gradually
decreasing. As a reason you can point out the huge number of claims that are
made every year.
In some metro cities of some major states, the number of property
owners who claim the insurance is quite high.
- You
do not get your claim always
There is no guarantee that you will get your claim if you file it.
If you have request for a claim once and get it cleared, there is a chance that
you will not receive your compensation again.
- It
is not always important
For some ultra-luxurious residential property, a
homeowner’s insurance is enough. A hazard insurance is not required at all.
Unless you have something valuable at home, this insurance will cost you hefty
for no reason.
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About Avani Rai 
THE 42
0 connections, 0 recommendations, 45 honor points.Joined APSense since, November 6th, 2015, From Kolkata, India.
Created on Aug 1st 2018 03:32. Viewed 385 times.
