Property insurance and its types

What does it cover?

This insurance concerns the property and the public liability. It covers the material losses resulting from damage.

It can be divided into categories according to the object of insurance and the type of risk. An example might be a marine or a fire insurance.

The subject of the property insurance can be both a natural and a legal person whereas its object are the property rights and the responsibilities of the insured person. The nature of damage covered by the insurance is always negative and the value of the damage is measurable in money. The sum insured is determined on the basis of the value of the object of insurance, while the benefit is paid in the form of compensation. The property policies consist of only short-term contracts, i.e. for up to one year.

Property insurance coverage

Property insurance coverage applies to:

• property —  including its loss or damage
• public liability — including third party property damage

In case of an event provided for in the contract, the insurance company is obliged to pay the compensation.

Types of property insurance.

Property insurance can be divided into two groups: individual and corporate insurance.

They provide the customers with:

• auto insurance,
• home insurance,
• travel insurance,
• marine, aviation and railway insurance,
• industrial insurance,
• agricultural insurance,
• public liability insurance,
• financial insurance.

Auto insurance is addressed to individuals and corporations and offers the following products:

• comprehensive car insurance,
• public liability insurance — civil liability of the owner or the driver of the vehicle for damages to life, health and property of third parties,
• assistance insurance — covering towing and the costs of totalling, returning from the place of accident, medical assistance, hospitalization and of the injured transport.

Home insurance, also homeowner’s insurance, covers damages such as: damage to the building, to the household property, windowpane breakage, burglary, theft, impossibility of living as a result of a fire or flood etc. as well as personal liability insurance (i.e. flooding neighbour's flat).

In turn, travel insurance offer is usually very wide. Its scope includes: loss or damage to luggage, consequence of the occurrence of accident, medical costs or third-party insurance.

Marine insurance covers: boat casco, cargo insurance — damages in purchased or delivered goods, freight insurance — cost of transporting the load, public liability insurance — shipowner's liability.

Aviation insurance is similar to the marine one and covers: carrier's passengers liability for damage on the ground as well as liability of aircraft manufacturers, airports and airport operators.

Railway insurance is offered to the carriers and infrastructure owners in the event of damage to the users’ property of their own property and personal damages.

Industrial insurance is partly similar to the home insurance (natural disasters, theft, public liability), but also includes protection against sabotage, industry-related risks or equipment failures.

Agricultural insurance covers damages being the result of forces of nature (drought, flood, hail), and losses in crops and livestock as well as obligatory public liability and buildings insurance.

Public liability insurance.

Public liability insurance is prepared for various professional groups, such as doctors, lawyers, investment advisors, entrepreneurs and natural persons.

The last mentioned group is the financial insurance protecting accounts receivables (bank credits, mercantile credits, leasing or instalments). Other insurance of this type may be: loss of regular income insurance, loss of earnings insurance, extra expense and contingency insurance or business interruption insurance.

The most frequently chosen insurance policies

The most frequently chosen insurance policies are: motor vehicle liability insurance (almost half of all contracts signed) and then other material damage insurances — insurances of weather and climate-related disaster risk, comprehensive car insurances and public liability insurance for agricultural contractors.

Property insurance provides a buffer against crisis situations. Their wide range allows the insured to protect himself against the consequences of the damages related to the vehicles, immovable properties, travels or natural persons. The conclusion of an insurance contract allows, to some extent, to compensate the material harm sustained.