What is Property Insurance?

Protecting your property, whether it’s your home or a property you rent, is key to safeguarding your long-term financial prospects. Properties take up a significant amount of your time and investment, so it makes sense to ensure that if anything happens to your property, there’s sufficient compensation in place. You’re not the only property owner wondering about levels of property safety. All over Europe, the property insurance market is growing, with an increase of 7.94% every year to 2030. What’s more, every individual in Europe is expected to spend an average of US $181 on property insurance this year. 

There’s a difference between home insurance and landlord insurance, which is protection for rental properties. Here, we dive into rental property insurance and discover how property or landlord insurance works. 

Contents

• What is property insurance?
• How does it work?
• Key benefits of insuring your property.
• Insure your property with GasanMamo

What is property insurance?

Technically, there is more than one way to insure your property. Commonly known as home insurance, homeowners can take out protection in case of loss or damage to their home. 

Another type is property or landlord insurance. This kind of policy provides financial compensation if there’s damage to or theft from a property rented to tenants. Property insurance in this context protects landlords from financial liability during the rental of their property and can protect buildings, contents, and rental income.

Investing in a property takes such a substantial amount of investment for landlords that it requires careful planning and full consideration. Ensuring the property is comprehensively insured in case of a fire, flood damage, or loss of belongings is essential as costs can easily mount up. 

How does it work?

Property insurance works by supporting property owners with financial protection in the event of coverable loss or damage to the property. Suppose a covered loss or damage incident occurs, like storm damage or a burglary. In that case, the property owner needs to collect the appropriate evidence and contact their property insurer to file a claim. 

The next step involves the insurance provider assessing the claim and supporting evidence, such as a police report, photos of physical damage or witness statements. During this assessment, the insurer will decide on the extent of the coverage and what compensation is suitable for this claim. 

When the claim is settled, the insurer will provide suitable reimbursements that cover any repairs or additional relevant expenses. Typically, it’s likely that insurers work on reimbursement of the total cost of repairs to the limit of the individual policy. 

In addition, some property insurance policies include a liability clause. This means that the landlord of a property can be covered against any legal claims related to injury or property damage to third parties at the property. Liability is different for every insurance policy, but landlords can be covered for legal or court costs in relation to a property claim. 

Key benefits of insuring your property

There are multiple reasons why you should invest in commercial property insurance if you’re a landlord and rent properties to tenants. Not least, most mortgage lenders require a property insurance policy to be in place as part of a mortgage agreement. 

Here are some significant benefits of insuring your property:

Financial security

It’s hard to predict the cost of property damage or the loss of belongings until it actually happens. However, property insurance enables you to obtain reimbursement for covered losses. Moreover, legal fees can increase rapidly in the event of a claim that goes to court, so ensuring you have the proper protection in place will give you peace of mind. 

Legal protection

Investing in a current property insurance policy means that you meet mortgage lender requirements and stay legally compliant. Property owners can have a range of legal requirements they need to maintain, such as local rules around rental properties. Managing your property insurance every year will help you stay legally protected. 

Risk management

You might not have experienced any reason to claim on your property insurance to date; however, there is no way you can predict the future. Securing a comprehensive landlord insurance premium will help you manage and reduce risk, so you’re not exposing yourself to eye-watering costs if something goes wrong at your property. 

Stress reduction

A large investment in property needs to be safeguarded to keep it in good shape for the future. You may want to keep your property for the long term, or be thinking about maximising its potential to sell at some point in the future. 

Whatever your plans are, you’ll feel considerably less concerned if you know your investment is secured with insurance cover to count on if you need to make a claim. 

Insure your property with GasanMamo

As the leading insurance company in Malta, we have a wealth of property and landlord insurance experience to help you get the most out of your property. Browse comprehensive, tailored policies that come in a variety of options, including cover that protects your buildings, contents, rental income and legal liabilities. 

Our Landlord Insurance Policy covers your buildings and contents against loss or damage from a range of issues, such as storm, theft, earthquake, lightning or fire incidents. Plus, we have great automatic extensions included in the cover such as insurance for fixed glass, mirrors and sanitary fittings, damage to underground services, loss of metered water, and replacement costs for lost and stolen locks and keys.

Let us help you protect your property with a policy designed just for you. Contact GasanMamo today or get a quote online to enjoy peace of mind and unparalleled service.

GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.

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