Property assets, including houses, buildings, and land, are highly valuable and tend to appreciate over time. As such, it is essential for property owners to take necessary measures to protect their assets, making property insurance an attractive option for many.

Property insurance is a type of insurance that offers compensation benefits in the event of damage to the insured property due to specific risks such as fire, floods, or riots. This insurance product provides protection for various property types, including houses, apartments, and other buildings, and may also be referred to as building or home ownership insurance.

In Indonesia, property insurance comes in two main types: personal property insurance and business property insurance. Personal property insurance provides financial protection for houses, apartments, and their contents in case of damage or loss. This type can be further categorized as PSAKI (Indonesian Fire Insurance Standard Policy) and PAR (Property All Risk Insurance Policy). PSAKI covers fire-related risks based on the policy provisions, while PAR provides coverage for theft, fire, and natural disasters according to the policy terms for houses or apartments and their contents.

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On the other hand, business property insurance is tailored to protect offices, factories, schools, hospitals, and other commercial establishments. It encompasses non-industrial property insurance for businesses in the service sector like schools and hospitals, as well as industrial property insurance, which covers manufacturers or producers with compensation guarantees in case of disasters.

Having property insurance is crucial as it offers coverage against specific risks, depending on the type of insurance chosen. It provides peace of mind to property owners, ensuring they are financially protected in unfortunate events that could lead to damage or loss of their valuable assets. Whether it's safeguarding one's home or securing a business establishment, property insurance plays a vital role in mitigating potential financial hardships resulting from unforeseen events.

PSAKI Protection
-Risk of fire due to negligence of the Insured or other parties.
-Lightning strike.
-Explosion due to sudden release of energy due to vapor or gas.
-Airplane accident.
-Smoke due to fire.

PAR Insurance Protection
-All protections provided by PSAKI.
-Riots, malicious acts, riots, and strikes.

-Terrorism, earthquakes, sabotage, tsunami, and various other natural disasters.

Despite being able to provide the above protection benefits, it should be understood that most property insurance products also have policies on the exclusion of risks covered, including:

-Machine damage due to usage
-Nuclear, radioactive, atomic reactions, and the like
-War
-Property in the process of transportation to another place
-Waterborne or airborne property
-Malicious intent of the insured person or worker

Source: www.cermati.com