[2] All About Property Insurance Part 2 **

Property Insurance is one of general insurance services that covers the owner or another person with interests in the property. Property Insurance can be types of home insurance or fire insurance and PAR insurance. Property All Risks [PAR] insurance has a wider warranty when compared with the type of home insurance or fire insurance. For example PAR insurance covers the loss of income.

Wide of Coverage

Fire insurance policy is named Perils which mentioned that any risks are guaranteed by specific, consisting of :

1]. Main Coverage
The Main Risks are covered in fire insurance can be summarized abbreviation as FLEXAS, which stands for : Fire, Lightning, Explosion, Impact of Aircraft and Smoke.

2]. Extended Coverage
The Main Risks can be extended to :
Strike, Riot and Malicious Damage (RSMD), Terrorism and Sabotage, Windstorm, Flood, inundation Impact damage Subsidence, landslide Debris Removal, Earthquake, Burglary and so forth.

Property All Risks insurance policy is open perils that auomatically cover all causes of loss not specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from Earthquake, Burglary, Flood, Nuclear Incident, Acts of Terrorism and War. The risks that are excluded may vary depending on considerations of risk of each country.  In Indonesia Earthquake and Burglary risks warranty will  will be issued in separate policy.

Types of Coverage

There are 3 types of insurance coverage  :

^[1] Replacement cost coverage pays the cost of replacing your property regardless of depreciation or appreciation. Premiums for this type of coverage are based on replacement cost values, and not based on actual cash value.

^[2] Actual cash value coverage provides for replacement cost minus depreciation. Extended replacement cost will pay over the coverage limit if the costs for construction have increased. This generally will not exceed 25% of the limit. When you obtain an insurance policy, the coverage limit established is the maximum amount the insurance company will pay out in case of loss of property. This amount will need to fluctuate if homes in your neighborhood are rising; the amount needs to be in step with the actual value of your home. In case of a fire, household content replacement is tabulated as a percentage of the value of the home. In case of high value items, the insurance company may ask to specifically cover these items separate from the other household contents.

^[3]One last coverage option is to have alternative living arrangements included in a policy. If a fire leaves your home uninhabitable, the policy can help pay for a hotel or other living.