What is Property Insurance in Cyprus and How Does it Work
Property insurance is a type of insurance policy that can provide coverage for property owners (private or commercial) or renters. These policies can usually provide coverage for damages caused by fire, flooding, theft, weather, earthquake, malicious damage and other risks. The coverage in most cases extend to provide coverage for damages to third parties including renters . Renters can also buy coverage for personal belongings plus damage to third parties.
Types of Property Insurance
a. Homeowners Insurance
Your home is often one of your largest investments. Make sure that you will buy a coverage that covered the unexpected. Most Homeowners insurance covers more than the house itself. Additionally, it also provides cover for your liability as the owner and/or occupied of the property insured.
In summary it provides cover for –
Buildings- Loss or damage to your building caused by fire, smoke, explosion, lighting, earthquake, riot, malicious damage, weather conditions and your legal liability as owner of the building for accidents.
Contents- Loss or damage caused by perils covered for buildings, temporary accommodation costs if your home can not be lived due to damage resulting, theft, items in the freezer.
Some homeowners policies can extend to cover personal accident to persons living in the house, coverage for domestic pets, all risk coverage for contents and portable items while outside home.
b. Commercial Property Insurance
Commercial property insurance is insurance used to cover property and equipment from the risk of disaster plus coverage for damages to third parties.
In summary it provides cover for –
Fire, smoke, explosion, lighting, earthquake, riot, strikes, malicious damage, weather conditions, theft, aircraft or other aerial devices falling from the sky, escape of water.
Additional cover can be provided for Loss of Profits that includes, loss of profits for the period necessary to repair damages and be fully operational again, fixed costs like salaries, electricity, rents, mortgage repayments etc.
Additional coverage can also be offered for glass, money, equipment in the open or not at premises.
What is not covered by Property Insurance – General exclusions
Damage caused by wear and tear.
Loss or damage caused by you.
Loss or damage occurring outside the period of insurance.
Radioactive contamination, war risks, terrorism.
Loss or damage caused by pressure waves caused by aircraft.
Pollution or contamination, mould and fungi.
Asbestos related claims.
Theft if not accompanied by forcible entry.
Goods held in trust or on commission unless specially mentioned as insured
Property insured by any marine policy.
Data corruption or destruction of data, coding program or software.
What are consumers obligations
Disclosure of Information- You must give complete and accurate answers to any information related to the coverage you want to purchase.
You must take all reasonable steps to prevent loss or damage and to maintain property in good condition.
In case of a claim
You must take all reasonable steps to minimize loss or damage and recover missing property.
Immediate informed the police in case of burglary or malicious damage.
Notify Insurers as soon as possible
Availability of Property Insurance in Cyprus
There are 20 licensed Insurers in Cyprus offering this type of coverage.
For more information please contact us at email@example.com