Property insurance in Pakistan has always been overshadowed by the property owners due to lack of awareness. On the other hand, the customer journey is not seamless and smooth. As a result, people ignored to save their property from potential risks of damage and loss.
Ultimately, the property owners ended up losing their property as a result of a fire, flood and robberies. In Pakistan, many people and corporations don’t insure their properties against any losses expected to occur in uncertain circumstances.
We will guide you on what is property insurance and why is it important. Moreover, we will discuss what the main hurdles are the interested property owners face when they want to insure their property. So, let’s start our discussion!
WHAT IS PROPERTY INSURANCE IN PAKISTAN?
Property insurance companies provides you protection coverage against any loss, theft, and damage to the building, equipment, machinery and anything that is part of your business. Property insurance protects the property owners from all the damages accruing to a property.
However, different insurance companies provide different insurance plans in this regard. For example, some general property insurances cover all types of perils. On the other hand, some insurance companies in Pakistan provide specific coverage against a particular type of risk. For example, they offer flood insurance, earthquake insurance and liability insurance.
PROPERTY INSURANCE IN PAKISTAN
Property insurance in Pakistan, also known as home insurance, is being offered by popular property insurance providers. However, people have no or little awareness of these insurance plans. On the other hand, they don’t understand the procedures of how to get home insurance in Pakistan. And, how to claim property insurance in Pakistan.
The following real estate insurance companies are offering the home insurance plans in Pakistan.
- Askari General Insurance Company Ltd
- Jubilee Insurance
- IGI General Insurance
- Alfalah Insurance
WHY PROPERTY INSURANCE IS OVERLOOKED IN PAKISTAN?
Let’s discuss some of the hurdles people find challenging during their insurance journey!
RIGID RELIGIOUS BELIEFS
Rigid religious beliefs can create hurdles in the way of creating awareness about innovative insurance plans. The attitude of people towards the insurance is very discouraging, particularly in rural area. The attitude of people towards managing their finances is very depressing as people don’t plan for uncertainty in Pakistan.
People find insurance as against the teachings of Islam. This is the reason people find it quite hard to think about and buy an insurance plan. As a result, the insurance companies have introduced the concept of Takaful Window Operation to make the insurance according to the rules of Islam.
The communication barriers between the company and the clients are also one of the main barriers. The company communicates their policies in a complex language that a layman find hard to comprehend. It clouds the transparency in real estate insurance.
INCOME LEVEL IS LOW
The next huge hurdle in the way of property or home insurance is the low level of income. The low income people cannot afford to pay insurance premium on regular basis.
EDUCATION LEVEL IS LOW
Another major factor in the way of property insurance is the low education and low level of awareness. People are hesitant to invest in their future. They don’t save for the uncertain circumstances and they don’t plan to fight with the unforeseen events in life. As a result, they feel miserable and financially weak when an uncertain event occurs in their life.
BENEFITS OF PROPERTY INSURANCE
Although there are a number of benefits of property insurance, we will discuss some of the major benefits in this article here.
PROTECTION FROM LOSSES
The home property provides a protection against any financial and property losses. They cover the replacement cost or the cost of damage of your home. For example, fire, vandalism, robbery, loss of any content of your home. Check how to get home finance in Pakistan.
Natural calamities like flood, earthquake, wildfires, and lightening, hail and wind storms. For example, if you live in a place where natural calamities hit severely, then property insurance is an ideal and best option for you.
PEACE OF MIND
The insurance companies provide a relief and you feel peace of mind when such event happens to your home. Instead of losing hope and home, you can feel contentment over the safety and protection of your home. Buying properties in Pakistan with home insurance plans will increase the ultimate value.
Finally, we can say that rental property insurances in Pakistan must be increased due to the vulnerable properties. As they can be damaged or destroyed by the natural disasters and the robberies etc., so home property is ideal for people. However, government, insurance companies and people should work closely to remove the obstacles in the development of home insurance in Pakistan.
Recently, trends have changed and many people have insured their homes. However, they are very few in numbers and don not cover more than 1% of the GDP. So, more policies and steps needs to be taken to ensure everybody has insured their home. Property insurance in Pakistan is the need of the hour.