Frequently Asked Questions

What factors determine the rate of my premium?
Your premiums will be calculated according to the value of your property, your statistical risk towards certain perils (e.g., is the nature of your industry intrinsically hazardous?), the protective safety measures you have in place, and your proximity to other high-risk areas.

How are reimbursements calculated?
It depends on the nature of your policy. You can ask for the replacement-cost basis, which will reimburse you for the investment you must make to replace the lost or damaged property.

On the other hand, you can also be reimbursed for the actual cash value, which deducts the physical depreciation of the property from the total reimbursement you will receive. This type of policy has lower premiums but may not give the adequate protection if you lose your home or business.

How can I lower my premium rates?
Install protective safety measures like burglar alarms, smoke detectors, fire extinguishers. You can also choose to remove riders from your policy, and make your own back-up measures (like keeping duplicates of important records in another site).

What is the process for making a claim?
This varies for each insurance company, and should be one of the first things you should clarify before signing up for a policy. Some will require certain documents and will even send a representative to make an objective assessment of real damage; others will process a claim by phone.

Will property insurance also cover employers' liability?
Aside from the damage to property, certain perils (like fire or accidents) can also injure employees who can file suit against the company. Property insurance does not automatically protect the company from employers' liability, but you can ask for a rider and negotiate for an umbrella package and a discounted premium.

Will property insurance also cover accidents or incidents caused by human error?
Not automatically, but you can ask for additional coverage through a rider.