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Benefits and Types of Home Insurance

In House Magazine
11 Jul 2019
Benefits and Types of Home Insurance

Home insurance is insurance that provides protection against losses resulting from fire, theft, or damage caused by natural disasters. Home insurance itself has protection from all forms of risks that arise as a result of the various things mentioned above, and will be borne by the insurance company.

If you do not have insurance, then all losses arising from this incident will be your own responsibility. It's easy if you have enough funds, but what if you don't have the funds for it? So you can be sure you and your family will fall down and experience financial difficulties, disruption in handling work that brings regular income every month, it is difficult to return to the initial position or condition.

Never underestimate the problem of home insurance, the protection is enormous and has very important benefits for you and your family. Not only major damage, but various other small repairs due to natural disasters will also be covered by it. When you talk about protection, naturally you will always want the best protection you can get. Of course, you do this with the aim of minimizing the risk of losses that may arise at any time in the future.

Based on the services provided, home insurance can be divided into two types, namely:

1. Property All Risk / Industrial All Risk

This is a type of fire insurance that is unnamed perils, which provides guarantees for all risks that occur to the insured property and or interests, except for the risks listed in the exceptions, namely: war, terrorism, nuclear and radioactivity; delays, loss of market share or business interruption; intentional, employee dishonesty: mechanical and boiler damage; wear, corrosion, the nature of the goods themselves; pollution or contamination.

The guarantee provided by the Property All Risks (PAR) Insurance service includes:

  • Guarantees for riots, strikes, misconduct and riots.
  • Coverage for hurricanes, hurricanes, floods and water damage.
  • Coverage for earthquakes, volcanic eruptions and tsunamis.
  • Coverage for landslides and ground movements.

Basically, Property All Risk (PAR) insurance only applies to non-industrial buildings, such as offices, homes, hospitals, schools and various other property buildings. As for industrial buildings, such as factories, warehouses, malls and shops, Industrial All Risk (IAR) insurance will be used.

2. Standard Indonesian Fire Insurance Policy (PSAKI)

This insurance is a standard policy issued by the Indonesian General Insurance Association (AAUI) as a form of fire insurance service. The benefit of this property insurance product is to provide protection for insured property and/or interests that are directly caused by: fire, lightning, explosion, falling aircraft (aircraft), and smoke (smoke).

However, in addition to the main benefits listed in the PSAKI, fire insurance can be expanded with guarantees for other risks that are not guaranteed in PSAKI, including:

  • Riots, strikes, malicious damage, civil commotion.
  • Floods, hurricanes, storms and water damage.
  • Landslide.
  • Disassembly.
  • Business interruption (loss of profit)

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