The Importance of Property Insurance

If you’re thinking of buying a house or already own one, you need to consider getting property insurance. Many people make a mistake by skipping this step, but it is an essential and important part of owning any kind of property. Here is why you should think about it. 

What is property insurance?

 Let’s first cover what Homeowners Insurance is. It is a special kind of insurance that ensures financial coverage of the building structure and all of its contents against any natural disasters that may occur. The finances covered by this insurance aren’t fixed. It mainly depends on the type of insurance you took.

How can one get property insurance?

Property insurance comes in a form of a contract deal referred to as a policy. This legal document binds the insurance company and the policy-holder. The policy-holder is expected to pay a certain amount to the insurance company that will later cover the costs of any damage your property has undergone.

You, as a policy-holder, need to thoroughly read and examine the contract you’ve been given. This document provides you with all the information you need. It tells you about what kind of damages the insurance is covering and how much. 

There are many different insurance companies that offer a wide range of different types of insurance policies. It’s best that you check them all out to see what your options are. This can get a little overwhelming if you are not familiar with how these companies work.

For that reason, hiring some of the most professional property lawyers who can guide you through the process and help you out can be very helpful. In case anything goes wrong, they can guide you through the legal process and prepare you for what comes next. 

There are several reasons why you should consider getting property insurance. Here are some of the most important ones. Keep reading.

It Protects the House and Its Contents

First and foremost, property insurance has a job to protect your house and the contents of it. Any kinds of damages such as ones caused by natural disasters, fire, or any other factors, are automatically covered by this insurance. Apart from that, property insurance also covers the risk of any loss of personal belongings and property due to criminal acts.

It Offers a Sense of Safety

When you have a policy that ensures financial coverage of any damage or loss you may experience on your property, it sure is easier to sleep at night. The property insurance provides you with a sense of safety no matter what. The risks are lowered, and if something does happen, your insurance agency will be ready to compensate for your loss.

It Has a Low Cost

Believe it or not, the average property insurance value is actually very low and affordable. For instance, if your house with all of the contents of it has a total value of about IDR 1 billion, the premium value you need to pay is only 0.50/00 times of 1 billion. That is IDR 500,000 a year.

You also need to pay attention to the ratio in between the value of the premium that you are getting and the value of the coverage you need. To get the maximum amount of protection your house needs, you only have to pay for a very low amount of premium. That means that with just a small cost, your house and its contents are safe and protected at all times. 

It Compensates Damaged or Loss of Building or Property

Disasters are natural and they can happen to anyone. What matters is that any damage done to the house is financially covered. Well, that is where the property insurance comes in. This legal document can compensate for any damage or loss your property has suffered. The only condition is that the damage or loss was not caused by your and any other residents’ negligence. 

It Keeps Financial Disturbances Away

One of the worst damages your house can undergo is fire. In cases like these, most of the valuable things, including cash, burn down, never to be seen again. This disaster can cost you a lot. The repair and replacement are highly needed after a disaster like that and that can cost you a lot.

Fortunately, the property insurance covers it all. It can compensate for all the loss and keep your financial situation protected. 

It Covers a Temporary Place to Stay

Lastly, in case something happens to your home, the property insurance will offer you a temporary place where you can stay for free while your home is being repaired.


All things considered, getting property insurance can only have positive aspects. Sure, you need to pay a certain amount of money to have it, but think about how much money you’re saving for the long run. The losses you would suffer without having proper insurance are far beyond imaginable. They are hard to recover and you will never be safe and sound in a home that is not protected.