Property Insurance (buildings)
A property insurance policy is a type of insurance that covers damages and losses related to a building. It typically includes damage caused by fire, water damage, storms, vandalism, and other sudden and unforeseen events. Property insurance ensures that property owners or tenants are financially protected against potential damages and losses. The insurance can be customized to meet specific needs and coverage requirements.
It is not mandatory for a business to take out property insurance, and it is up to each individual business to decide whether they want to protect their property against damage and loss. However, it can be a wise investment to ensure that the company’s buildings are well protected against potential risks and damages. A mortgage lender, however, will always require that at least property fire insurance is in place.
What is property insurance?
Property insurance is a policy that covers damage and loss related to the physical structure of the building and fixed installations. A property insurance policy is important to protect property owners from financial loss and ensure the rebuilding or repair of the building in the event of damage.
What does property insurance cover?
More specifically, property insurance typically covers damage to a building caused by various events such as fire, explosion, water damage, storms, vandalism, and theft. The policy can also cover damage caused by burglary, pipe damage, frost damage, falling objects, and damage due to the sudden and unforeseen failure of technical installations such as electrical or plumbing systems.
The insurance can cover the rebuilding or repair of the building itself, including the roof, walls, floors, and installation systems. Additionally, it may also cover fixed fixtures, such as kitchen and bathroom equipment.
Example of property insurance in use:
Mr. Jensen owns a commercial property used as office space. During a violent storm, the building suffers significant damage to the roof, windows, and facade. Thanks to his property insurance, Mr. Jensen can cover the costs of repair and reconstruction of the property. The insurance ensures that he is not left to bear the financial consequences of the damages and can restore his property without significant expenses.
Get independent insurance advice at Söderberg & Partners
It can be challenging to predict when and to what extent damage will occur. That’s why it’s important to have an experienced insurance broker by your side who takes into account the risks and scenarios within business insurance that you may not have considered.
At Söderberg & Partners, our insurance brokers have the qualifications and experience to advise your business – whether you have 2 employees or more than 1,000.
It’s important to us that you, as a company, feel confident that you have the right business insurances. This allows you to focus on what you do best – running your business.
Based on our professional knowledge, we are often used as a sparring partner, especially when it comes to expanding business areas and evaluating the potential impact on your company. If we notice patterns in damages and types of claims, we assist you with strategies to prevent current or future damages, ensuring that your business is as well-protected as possible. We handle the administrative tasks and equip you to make the right decisions regarding risk management and insurance coverage.
We Often Get These Questions
A property insurance is a policy that covers damage and loss related to a building owned by the business. The property insurance ensures that owners or tenants of the building are financially protected against potential damage and loss.
A property insurance coverage typically includes damage caused by fire, water damage, storms, vandalism, and other sudden and unforeseen events.
No, property insurance is not mandatory. However, it can be a wise investment to ensure that the company's buildings are well-protected against potential risks and damages.
If a loan/mortgage has been taken out on the building, the lender may require that property insurance be established.