Housing Insurance vs Property Insurance: What’s The Difference And Which One Suits You Better?

Housing Insurance vs Property Insurance: What's The Difference And Which One Suits You Better?
Housing Insurance vs Property Insurance: What's The Difference And Which One Suits You Better?

Home is one of the valuable assets that must be maintained and protected from various risks and disasters.

One way to protect your home is to buy insurance. However, there are many types of insurance related to homes, such as housing Insurance, Property Insurance, fire insurance, and others.

Then, what is the difference between housing insurance and property insurance?

Which one is more suitable for you?

Housing Insurance

Housing insurance is insurance that provides protection against losses due to fire, theft, or damage caused by natural disasters in your home. By having housing insurance, you can minimize the costs incurred for home repairs because these costs will be borne by the insurance company.

In addition, housing insurance also provides protection for items in the house, such as furniture, electronics, art, and others. Housing insurance also provides protection in the event of a lawsuit from a third party due to damage to your home, or provide temporary shelter if your home can not be occupied because it is severely damaged.

Housing insurance is usually a requirement for those of you who apply for a home ownership loan (KPR) from a bank or other financial institution. The validity period of housing insurance is usually in line with the mortgage installment period. However, you can also buy housing insurance independently if you buy a house in cash or want to continue protection after the mortgage is completed.

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Property Insurance

Property insurance is insurance that provides protection against various types of risks related to property, including houses, shops, apartments, buildings, offices, warehouses, factories, and others.

These risks include the risk of fire, lightning, explosion, plane crash, smoke, natural disasters, theft by force (dismantling), riots and riots, legal liability to third parties, the cost of architects/surveyors and consultants, and even damage from being hit by a vehicle.

Property Insurance has a wider coverage than housing insurance. Property insurance also has an all risk feature that provides coverage for all risks that occur on your property, except for the risks listed in the exception in the policy.

Property insurance is suitable for those of you who own property other than a house or have property for business or commercial purposes.

Differences and similarities of housing insurance and Property Insurance

From the above, it follows that the main difference between housing insurance and property insurance is the insured object and the type of risk covered.

Housing insurance is more focused on protecting the home as a private residence from common risks such as fire, theft, or natural disasters.

While property insurance is broader in protecting various types of property from specific risks such as riots, riots, or being hit by vehicles.

However, there are also similarities between housing insurance and property insurance, both of which aim to provide financial protection for property owners in the event of losses due to unexpected risks.

Both also have the same mechanism, namely the customer pays periodic premiums to the insurance company and the insurance company will provide compensation in accordance with the amount of coverage in the event of a claim.

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Which one is more suitable for you?

To determine which one suits you better, you should consider several factors, such as:

  • The type of property you own. If you only have the house as a private residence, then housing insurance is sufficient to protect your home. However, if you have other properties such as shophouses, apartments, buildings, or properties for business or commercial purposes, then property insurance is more suitable for you.
  • The type of risk you are willing to take. If you feel enough protection from common risks such as fire, theft, or natural disasters, then housing insurance has met your needs. However, if you want to get protection from specific risks such as riots, riots, or being hit by a vehicle, then property insurance is more appropriate for you.
    The premium you want to pay. Housing insurance premiums are usually cheaper than property insurance premiums because the coverage and benefits are more limited. However, property insurance premiums can also be adjusted to the amount of coverage and the type of risk chosen. You can compare premiums from different insurance companies before deciding which one is more suitable for your budget.

Conclusion

Housing insurance and property insurance are two types of insurance related to a home or property. Both have differences and similarities in terms of objects, risks and benefits offered.

To determine which one is more suitable for you, you should consider the type of property, the type of risk, and the amount of premium you want to incur. Thus, you can get optimal protection for your home or property.

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