Common Misconceptions About Property All Risk Insurance

Whether it is securing property against any damage risks or providing liability coverage, property all-risk insurance helps to keep the property safe by every means. From properties located in high-risk locations like flood-prone areas to regular properties, all types of properties are often recommended to be insured with property insurance. This is due to the prevalence of certain misconceptions.

In this blog, some common misconceptions about property all-risk insurance will be discussed and cleared out while providing a clear idea about the property all-risk insurance coverages. Let’s dive deep in

Understanding Property All Risk Insurance Coverage

Unlike regular property insurance policies, property all-risk insurance covers a wide range of risks, including structural damage of the property, damage to personal belongings due to theft, burglary, etc. High-value commercial properties, public buildings, or other types of properties can be protected with all-risk insurance coverage.

Common Misconceptions about Property All Risk Insurance

Many misconceptions about property all-risk insurance may disturb your thoughts whenever you plan to purchase a property all-risk insurance. Therefore, to help you make an informed decision as a property owner, here are some of the common misconceptions about property all risk insurance.  

1. Rental Properties don’t Need an all risks Insurance:

Whether it is a vacant space ready to be rented out or an already tenant-occupied rental property, it must be covered with an all-risks insurance plan. Vacant spaces are likely to welcome vandalism, whereas tenants may bring manmade risks such as smoke or fire damage. To cover properties against such risks, comprehensive property all-risk insurance should be obtained.

2. Any property all risk insurance covers all needs:

Although property all-risk insurance covers a wide range of possible risks, policies provided by different insurance companies come with diverse exclusions. So, first, understand your requirements as a property owner. Then, find a reliable insurance service provider who can guide you to find the right property all risk insurance policy for you.

3. Old homes require less insurance costs:

As old homes cost less than new homes with modern features and upgraded specifications, a misconception has spread that insurance for old homes is cheap. However, this is not so. For old homes, owners may have to pay high insurance premiums depending on certain situations, like old roofing material, electrical and plumbing systems that are prone to damage, etc. The high chances of damages and repair cases increase the risk factors and eventually lead to a high insurance cost.

4. A large amount of savings can replace property all risk insurance:

Savings can give you financial support in case of any mishap that happens with a property. However, huge claims may cause hassles if the property is not insured. So, although property insurance is not yet mandatory for many properties, it is prudent to secure your property with an all risks insurance plan. Anyways, if you have large savings, you can choose a high deductible, which can reduce your premium amount.

5. Small businesses don’t need property all risk insurance:

Not obtaining property insurance due to the small size of a business is never a wise decision. Regardless of the size or nature of companies, all businesses should be protected with an all risks insurance plan, as dangers can happen anytime with any business. In fact, small businesses with their limited resources are vulnerable to the impacts of any mishap. The safety net of an all-risks insurance policy can lower the dangerous possible effects of a minor setback.

6. Property all risk insurances are costly to be afforded by all:

The financial responsibilities in cases of property damage, loss or theft, etc., are always costlier than a property all-risk insurance premium. Owning a property is a crucial investment in life, indeed. A suitable all-risks insurance is needed to keep the investment safe, ensure steady ROI, and provide peace of mind for the property owners. The cost of the premium is worth it.

About CoverB

CoverB, as a trusted insurance service provider in the UAE, helps corporate business owners, property owners, and others obtain the best-suited insurance plan for all risks from a broad range of options. It is a one-stop destination for your diverse corporate insurance needs. With a trusted insurance service provider like CoverB, understanding and leveraging diverse insurance packages becomes easier than ever.

Final Words

Selecting the right all-risks insurance for your property and obtaining it is indeed a complex task. In this whole procedure, misconceptions may arise and overwhelm you. With the right guidance from a trusted insurance service provider, you can clear these doubts. Before making the final decision of purchasing the property all-risk insurance policy, go through all clauses, including the mentioned exclusions, helps you get the best coverage for the property.