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Guide for Selecting a Property Insurance in Sri Lanka

Property insurance is an umbrella term for many types of property-related insurance policies. The main function of property insurance plans is to provide protection coverage for a variety of property types. This cover could be extended to Liability coverage as well.

What does property insurance cover?

On occasions such as the structure or the content of a property is damaged as a result of an unforeseen incident, or loss of valuables due to a burglary, the insurer provides financial reimbursement to the property owner or the renter for the loss. Under package policies or extensions it also provides liability cover for a third party if that individual was injured on the property.

In the property insurance category, there are numerous policy types including Private Dwelling House IInsurance, Home Comprehensive Insurance, Business premises Insurance, . Generally, personal properties are covered by a homeowners or renters insurance policy. But for extremely high-value personal properties, the policy may include extra terms, which are usually called ‘riders’.

When you file a claim, the insurer will reimburse either the value equal to the damage or the cost of the replacement.

How does property insurance work?

Typically, property insurance covers the perils caused by fire, lightning, Explosion ,Cyclone,Storm tempest, Flood, Tsunami and other weather-related causes. Burglary of valuables and vandalism at the property are also covered. Insurance cover could be extended to include to provide protection for a liability coverage for property owners for any injury that occurred at the property In case someone attempted to sue the Property owner.

Claiming your insurance

There are 3 ways your insurance claims are determined.

  1. Replacement cost - The insurer will reimburse the replacement or repairing cost for the damage, rather than calculating the actual cash value of it.
  2. Cash value - This is calculated by deducting the depreciation from the replacement cost. For example, if you have to replace one of your home appliances due to a breakdown and the appliance is 5 years old, the amount paid to you is less than the replacement cost.

What types of property insurance policies are available in Sri Lanka?

There are numerous property insurance policies available in Sri Lanka, which are segmented by the property types and property owners' needs. We can divide property insurance policies into two main categories as personal and business property insurance policies.

Personal property insurance policies

Among a variety of personal property insurance policies, private dwelling house insurance is the most sought after. This policy protects your house from various risks and lets you put your mind at ease without being worried about possible misfortunes happening in the future. You can read more about homeowners insurance policies here.

Continental Insurance offers comprehensive home insurance plans. Private dwelling house insurance covers mainly the perils caused by fire ,lightning and allied perils. A comprehensive home insurance/ combined insurance plan covers more risks and special scenarios. You can learn more about our home insurance plans here.

Commercial property insurance policies

Business property insurance policies are in a wider range catering to different businesses and different aspects of each business. As a business owner, you need to safeguard your assets and workforce from risks. Given that commercial operations are complicated, and the risks associated with them are innumerable, it’s mandatory that a company is insured.

Continental Insurance’s business insurance policies cover every aspect of all businesses and industries from Construction and engineering insurance, Liability insurance, Motor Insurance, Marine insurance, Employee related covers, Property insurance and Speciality lines. Read more about our business insurance plans here.