Property insurance - protection of property interests of owners of real estate, vehicles, works of art, goods, cargo, equipment, investments, in the event of certain events (fire, flood, man-made disasters, theft, natural disasters). Compensation for material damage is made at the expense of cash funds formed from the cash contributions of property owners. Property insurance for individuals is voluntary, for legal entities it is often prescribed by law. It implies full or proportional compensation for damages.
The property insurance contract is concluded between the owner and the insurance company. Before the execution of the contract, an assessment of the value of the insurance object is usually made. The sum insured cannot exceed the actual value of the object at the time of signing the contract. The term of the contract is from one year or more with an annual recalculation of the value of the property and the amount of payments. Individuals and legal entities can insure the full or partial value of the object. It is possible to insure the same property with different insurers. total amount compensation in this case should not exceed the value of the object.
The legislation provides for the norms of compulsory and voluntary property insurance legal entities. Compulsory insurance is subject to property owned by the state, objects of increased danger, collateral, vehicles purchased in or under a leasing agreement. An insurance contract can be drawn up both for the entire property of the complex, and for its individual parts. Compensation for damage to a legal entity is paid only if the company is not guilty of the occurrence insured event. Availability insured event must be documented.
Compulsory insurance of property of individuals is not provided for by law, but often the conclusion of such an agreement is a mandatory requirement of banks when issuing, for the purchase of vehicles. According to statistics, only 3% of individuals in the Russian Federation insure their own property. In Europe and the USA, 90% of owners conclude property insurance contracts. Insurance payments cover the full cost of lost or part of the cost of damaged material assets. The maximum payout depends on appraised value object, limits, franchise and other factors.
Voluntary insurance property implies the conclusion of an agreement with the insurer at the initiative of the company - the owner of material assets. Legislative acts regulating this type of insurance - Laws of the Russian Federation "On Insurance" dated November 27, 1992, "On the organization of insurance business in Russian Federation» dated 10.12.2013. For organizations, the costs of voluntary insurance, in accordance with the legislation of the Russian Federation, are included in the costs associated with production and sales, as other costs. Voluntary property insurance is always limited in terms of the terms of the contract.
Compulsory property insurance is provided for by the legislation of the Russian Federation for legal entities. It provides for the legal protection of state, personal, leasing, collateral, rental property. Compensation for damage is provided for the entire property complex or its individual parts. The insurance contract includes a standard list of risks, which in some cases can be supplemented. The conditions for property insurance are set out in the Insurance Rules, registered in government bodies. The contract should always cover the issues:
The cost of property insurance is determined by the contract concluded between the insurer and the insured. It depends on several factors: the estimated value of material assets, the degree of wear and tear of the list of risks, the amount of compensation, the amount of the franchise. The approximate cost can be determined using online calculators. The exact amount is determined when individuals and legal entities apply to insurance company to conclude an agreement. Insurers offer different conditions, a variety of types of insurance policies, from which citizens or companies can choose the best ones that suit their goals.
The rules for insuring the property of individuals and legal entities are established by the legislation of the Russian Federation and insurance companies. Often different for legal entities and individuals. They contain:
Classification adopted in the insurance business property insurance by categories of clients, types of objects, types of risks, conditions. These types of insurance are specified in the license issued to the insurer for carrying out activities. There are such types of property insurance:
Insurance companies develop various programs for property and residential premises insurance. Thanks to them, each policyholder can choose for himself the optimal conditions for protecting property interests, compensation for damage. The government and municipal authorities are developing special preferential programs making insurance accessible to all segments of the population, increasing the attractiveness of this type of service and social security of the population. Financial institutions develop property insurance programs for mortgage lending, transfer of objects in leasing.
Real estate insurance relations apply to buildings, premises, structures, plots, complexes owned by individuals and legal entities. The owner can insure the entire object or part of it. Individuals voluntarily, for legal entities - a procedure is provided compulsory insurance. The amount, conditions and method of compensation depend on the insurance liability system. The sum insured cannot exceed the appraised value of the object. The contract provides for full or partial compensation for damage resulting from the occurrence of an insured event.
Any enterprise (organization, institution), regardless of its organizational and legal form, owning property on the basis of ownership rights, or accepting it for leasing, pledge, rent, commission, for sale, storage or for other legal grounds, has the right to insure its property.
Property - a set of material values and things that are in use (possession) of the insured person. The property differs by types: movable and immovable property, property of agricultural and industrial enterprises. Movable property includes everything that can move. Real estate static, for example: buildings, structures, land.
The object of insurance is the loss, shortage or damage to certain property. Under an insurance contract, property may be insured in favor of the insured (beneficiary) who has an interest based on the contract (law) in the safety of this property.
Enterprise property insurance is divided into types of property insurance:
Property insurance legal organizations in the Russian Federation, the above types are carried out on a voluntary basis. The following property of enterprises is subject to insurance:
Property leased to other organizations may be insured separately from the common part of the property.
When insuring the property of legal entities, the following property shall not be insured:
An exception to the last paragraph is the case in which insurance is extended for a new period even before the expiration of the period under the previous contract, within the limits of the percentage of the value of the property that was specified in the original insurance contract.
The property interests of economic entities are manifested in case of death, destruction (damage), flooding, theft, destruction of property. It should be borne in mind that property interests are subject to insurance protection, the insured event with which occurred unintentionally (accidentally).
Business property insurance is carried out from possible receipt damage (loss) in case of damage or loss of property due to the following insured risks (insured events):
It's important to know!
Damaged is the state of property, in which there are no characteristic signs of its complete destruction or destruction, and which can be restored by repair. Destruction, death, loss, flooding is the disposal of property from use. Theft means the taking of property by fraud, theft or robbery.
When insuring the property of legal entities, the payment insurance compensation can be made both for the insured and for the beneficiary appointed by him (individual or legal entity). It is important to remember that the insurer's obligation to make an insurance payment arises only when an insured event (case) has occurred. The beneficiary (insured) before the occurrence of the insured event (case) has no rights and grounds to receive insurance compensation.
The organization of insurance protection of property of legal entities - enterprises and organizations deserves special attention.
Legal entities can insure the following property:
State;
Actually;
rental;
Collateral;
Leasing.
Enterprises can conclude the following types of property insurance contracts:
Basic;
Additional;
Special.
Under the main contract, it is possible to insure all property belonging to the enterprise: buildings, structures, transmission devices, power and other machines, equipment, vehicles, fishing vessels, fishing gear, work in progress, inventory, finished products, raw materials, goods, materials, etc. property.
Under an additional agreement, you can insure:
Property received by enterprises under a lease agreement (for rent, leasing, rental)
Accepted from other enterprises and the population for processing, repair, transportation, storage, commission, and the like.
A special contract may be concluded for insurance:
A separate type of property or a separate object (selective insurance);
Property transferred under lease agreements (for rent, leasing, hire)
Property for the period of experimental or research work, exhibiting at exhibitions.
In property insurance of legal entities, certain restrictions on the objects of insurance are applied, as set out in Section 8.1.
The procedure and basic conditions for property insurance are specified in the Rules for Insurance by Type of Property or Risks, are developed independently by individual insurers and are subject to registration with the State Commission for Market Regulation financial services of Ukraine when issuing a license for the right to carry out the relevant type of insurance.
The main terms of property insurance cover three aspects:
1) insurance liability;
2) insurance valuation and sum insured;
3) principles of compensation for losses.
The insurance rules also display additional conditions for compensation for losses, the amount of the deductible, the obligations of the parties and other circumstances that may affect the insurance indemnity and the fulfillment by the insurer of its obligations to the insured.
Insurance liability is a list of insurance risks, in the event of which the insurer undertakes to compensate for losses. Property insurance uses a standard list of risks, which in individual cases may be supplemented or specified by the insurer.
Property insurance is carried out in case of death, destruction or damage to it due to such insured events (risks):
Fire, lightning strike;
Natural disaster (earthquake, flood, hurricane, downpour, hail, collapse and other natural and climatic phenomena unusual for the area);
Accidents of heating, fire-fighting, plumbing, sewer systems and other technical accidents;
Illegal actions of third parties, theft, etc.
The property is also considered insured in the event that, due to fire or a sudden threat of natural disaster, it must be dismantled or moved to another place.
The scope of insurance liability excludes losses caused to property due to:
Processes that cannot be avoided in work or those that naturally follow from them (corrosion, decay, natural wear and tear and other properties of objects);
Its processing by fire, heat or other thermal influences for the purpose of processing, drying, boiling, melting metals, etc.;
Changes in navigational and other conditions;
The action of electric current on various electrical devices and malfunctions of electrical equipment;
Intentional actions of the insured and persons in labor relations with him;
Theft of property, if the fact of theft is not verified by the police or other law enforcement agencies;
Improper storage of property;
radioactive contamination;
Defects in property that occurred before the conclusion of the contract;
Acts of terrorism, hostilities, civil unrest, confiscation or seizure of property;
Coup d'état or conspiracy.
Policyholders have the right to insure property against all the risks proposed in the insurance rules or only specific risks. Insurance tariffs are set separately for types of risks and are adjusted depending on the level of complexity of the risk and other circumstances. For adjustment, decreasing or increasing coefficients are used.
The sum insured and the insurance assessment are important. The sum insured for each insured object must correspond to its actual value. This is very important, because if the replacement amount is insufficient, then the insured will not be insured, and if it is too high, then this situation will not be beneficial for the insurance company, since under such conditions the insured will be in the event of an insured event. The actual (insurable) value of property is determined differently depending on the type of property, for the purpose of insurance assessment it is divided into the following groups:
1. Fixed assets.
2. Commodity-material values.
3. Products in the process of production or processing.
4. Object under construction in progress, e. Exhibits of exhibitions, museum valuables, collections, author's works, antiques.
The insurance assessment is based on two types of coverage:
1) insurance indemnity;
2) insurance recovery.
The first type means that the insurance indemnity must provide the insured with compensation for losses in the amount of the value of the property valid at the time of the insured event, that is, the insured, after the occurrence of the insured event, must be placed in the same financial position in which he was immediately before the insured event. This type of coverage applies to all groups of property.
The second type means that in the event of an insured event, the entire cost of restoring destroyed or damaged property will be covered. The policyholder, after the payment of insurance compensation to him, will be placed in Better conditions than it was before the insured event. Otherwise, the insured will receive the amount that he needs to re-build or purchase an identical object to replace the previous one. Mostly this type of coverage is used only for the first group of property.
Given this approach, the sum insured for fixed assets (buildings, structures, transmission devices, machinery, equipment, etc.) is equal to the replacement cost or book value, taking into account wear and tear; for inventory items - the purchase price (acquisition cost); for products in the process of production or processing - the cost of its manufacture; for objects in the stage of construction in progress - actually incurred costs for their creation; for other property (exhibits of exhibitions, museum treasures, collections, author's works, antiques, etc.) - contractual (estimated) or market value.
The property of a private entrepreneur in the absence of a balance sheet is accepted for insurance in accordance with its description at an estimated cost.
The estimated value of the property can be determined on the basis of an expert assessment carried out by surveyors. Appraisal (survey) bureaus have already been created in Ukraine.
The property can be insured both for the full value and for a certain share. In the case of property insurance not for the full value, losses upon the occurrence of an insured event, as a rule, are also reimbursed in full (applies proportional system insurance claim).
The calculation of insurance payments (insurance premiums, insurance premiums) is carried out on the basis of the sum insured and insurance rates established for individual risks and differentiated depending on the complexity of the risk or other circumstances reflected in the insurance contract. When calculating insurance premiums, various discounts and benefits are also taken into account, which are provided to the insured by the insurer. The amount of insurance payments may also depend on the following components:
Type of property and conditions of storage of property;
The technical condition of the enterprise;
Type of production;
term of insurance;
Forms of making insurance payments;
Conclusion of a franchise agreement;
Continuity of insurance for several years;
Absence of insured events;
Implementation of preventive measures, etc.
Yes, more high stakes are used for insurance of equipment, instruments during research and experimental work, space technology. Increased risks accompany vehicles, so they are insured at separate rates.
Property is considered insured if an insurance contract is concluded between the insurer and the policyholder. The insurance contract is mainly concluded on the basis of a written application of the policyholder. In the cases provided for, the application may be accompanied by an inventory of property, which is an integral part of the contract. When concluding an insurance contract, the policyholder is obliged to provide the insurer with truthful information about all circumstances known to him that are important for the assessment insurance risk. In some cases, when concluding property insurance contracts, provision may be made for the issuance of an insurance certificate (insurance policy) to the insured.
Property insurance contracts are concluded mainly from 1 to 11 months, for one year or more (indefinite period) with an annual specification of the value of the property. If during the period of validity of the insurance contract the value of the property changes, this causes the need to recalculate the sum insured and insurance payments and conclude additional agreement for a period until the expiration of the main contract, or even renegotiation of such an agreement.
After obtaining the consent of the insurer to conclude the contract, the policyholder is obliged to pay insurance premiums or part of them within a certain period to the account of the insurer. Contributions are paid by bank transfer or in cash.
General requirements for the content of the insurance contract and the procedure for its conclusion are defined in the Law of Ukraine "On Insurance" (section II).
In the event of an insured event with the insured property, the claims of the insured are satisfied in the following sequence: the fact of the insured event is established; an insurance act on an insured event is drawn up; the amount of damage and insurance compensation is determined; insurance payment is made.
The insurance indemnity is based on the proportional liability system, that is, in case of loss, destruction or damage to property, the insurance indemnity is determined in the proportion in which the property was insured, but not more than the sum insured. The calculation is carried out as follows:
Insurance indemnity = __ Sum Insured Zbitok__
Property value
General conditions and procedure for the payment of insurance compensation specified in Art. 25 of the Law of Ukraine "On Insurance". Specific conditions are defined in the rules and in the insurance contract.
Unless otherwise provided in the insurance contract, the losses are indemnified as follows:
In case of damage to property, the insurance indemnity is paid in the amount of the difference between the declared sum insured and the value of the remains of the property suitable for further use;
In case of loss of property, insurance compensation is paid in the amount of the actual (replacement) value minus depreciation and the value of the remains of the property suitable for further use.
In the event of an insured event, the policyholder must:
Take measures to prevent and reduce losses;
Notify the insurer of the occurrence of an insured event within the period specified in the insurance contract;
Notify the relevant authorities about the occurrence of the event according to their competence (police, fire, emergency services, etc.);
Provide the insurer with all the documents necessary to establish the causes and amount of damage;
Until the arrival of the representative of the insurer, store all the remains of the destroyed or damaged property.
Calculation and payment of insurance compensation is made on the basis of the application of the insured and the insurance certificate or emergency certificate. The insurance act is drawn up by the insurer or a person authorized by him - an emergency commissioner with the obligatory participation of a representative of the insured.
emergency commissioners- these are persons who are engaged in determining the causes of an insured event and the amount of losses, the qualification requirements for which are established by acts of the current legislation of Ukraine.
The insurance indemnity cannot exceed the amount of direct damage to the insured property. The amount of damage may also include costs associated with saving property, preserving its remains in the preparation of an insurance act, cleaning and landscaping, conducting an examination and other necessary and expedient costs.
The insurer may refuse to pay out the insurance indemnity if the policyholder has not fulfilled the obligations, stipulated by the agreement insurance.
The grounds and procedure for refusal are regulated by Art. 26 of the Law of Ukraine "On Insurance". They may be:
Intentional actions of the insured, aimed at the occurrence of an insured event;
Submission by the insured of knowingly false information about the object of insurance;
Receipt of damages from the guilty person;
Untimely notification of the occurrence of an insured event or obstruction to the insurer in determining the circumstances and causes of damage;
Other reasons, if it does not contradict the legislation of Ukraine.
The property insurance contract is valid until full payment of the insurance indemnity. Payment of insurance indemnity is carried out in accordance with the procedure established by the contract and within a certain period of time. This may include a deductible or a regular payment if the contract is renewed.
The benefits of insuring tangible assets and potential financial problems are certainly understandable to managers of commercial companies, founders of self-managed organizations, and large production workers.
For legal entities, the occurrence of an event that may lead to the complete or partial loss of material, intangible assets may face bankruptcy. Accounting for property without fail, uniquely allows you to assess the risks of losses in case of unforeseen situations. In the world market, a large share of insurance premiums and payments falls on property insurance of legal entities.
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Most agreements with insurers are concluded in relation to property:
The first category includes buildings, offices, workshops, buildings for industrial purposes, facilities under construction, etc., the second - office equipment, removable equipment for production, collapsible industrial complexes, as well as vehicles intended for movement.
Interesting! According to the legislation of the Russian Federation, vehicles subject to mandatory state registration, namely, inland and sea navigation vessels, air and space objects, belong to real estate. In fact, these are means intended for movement, and according to the law, objects classified as immovable. They are called "property by law".
The type is one of the factors affecting the cost of an agreement with an agent. The more mobile the property, the more likely it is that an unforeseen event can happen to it.
The subject of property insurance does not have to be any material object specifically specified in the policy at the time of signing. The object may be possible obligations to the subjects, uncertain at the time of the conclusion of the agreement.
The purpose of concluding contracts is to protect property interests, which, depending on the specified subject, are divided into the following types of insurance:
An example of covering financial risks is bank insurance of deposits, valuables, deposits, loans, issuers plastic cards, the likelihood of attacks on intellectual property, unauthorized intrusion of malefactors into corporate networks.
Responsibility in a legally mandatory manner is covered by OSAGO policies or contracts with owners of hazardous production facilities. They cover the potential harm that may be caused due to accidents, incidents that occur during their use. Responsibility for professional errors is indicated by the subject of agreements with persons engaged in notarial and advocacy activities.
There are many factors that affect the insurance premium. Of course, it is more profitable for the insurer to include a full package of all kinds of risks in a standard policy on the principle of “everything from everything”. Legislation is a complicated thing, when discussing major transactions with an agent, a competent lawyer who can read the contract, find “pitfalls”, add more acceptable conditions to it, and reduce the tariff will not interfere.
The insurer's premium is calculated as a share of the sum insured, and for material items its limit, within which the guarantor will be liable, cannot exceed the value indicated in the balance sheet of the legal entity. But it is quite possible to reduce the upper limit of the amount, while indicating the real value of the property. If the contract is concluded for a smaller amount in order to save on payment, then it must be taken into account that the compensation can also be proportionally reduced by the emergency commissioner upon payment.
Reducing limits and premiums is not possible when concluding contracts, the terms of which are determined by law, for example, in OSAGO policies.
The impact of the franchise on the cost of the policy is inversely proportional. The larger the franchise, the cheaper the agreement. It is understood that at the expense of the deductible, the insurer shares its liability with the insured and therefore reduces the payment.
Attention! Franchise is conditional and unconditional. With conditional - compensation will cover all losses and will be paid in full if the damage exceeds its limit. With unconditional - compensation is calculated in any case minus it.
The way to reduce the cost through a franchise requires the approach of a real business executive. Sometimes it is better to overpay a small amount in advance than not to receive compensation for losses at all later. But the presence of a small franchise is still necessary. If the damage is relatively small, then it is easier for the owner to cover the losses out of his own pocket than to call emergency commissioners, pay an expert for independent evaluation and collect the necessary paperwork for the payment.
The rate for buildings and building structures will be less than for smaller items, equipment involved in the production process, transport. Agreements concluded regarding valuable papers, weapons, antiques or unique items are much more expensive. In addition to them, the agent will require more detailed inventories certified by the competent authorities, enhanced security conditions - safes or other methods that prevent third parties from accessing them.
Upon entering into an agreement regarding production complex as a whole (building, equipment, inventory, engineering structures, interior decoration) the insurer will most likely exclude a stand-alone glass unguarded lightbox from the list of items covered by its protection.
Owner's attitude towards tangible assets also affects the cost of the policy. If the production processes are monitored by cameras, cars are kept in guarded parking lots outside of working hours, on construction sites several times a day there are rounds of physical security, and there is no statistics of payments for the previous few years - this may be a justified reason for reducing the tariff. For regular customers who have not received payments, loyal agents provide a discount.
When concluding a contract, it is necessary to match the coverage with the type of property being insured. Sometimes if an agreement is concluded only regarding office equipment (furniture and working interior items) located on one of the floors of a building owned by another owner, then in type sample you can still see wider coverage than required.
For example, the insurance of desktops located in a Moscow high-rise building in case of natural disasters such as landslides, landslides, subsidence or volcanic eruption sometimes causes a smile. If this coverage affects the rise in price of the policy, then you should not smile.
Another thing is a more frequent natural phenomenon - a lightning strike, which can damage electrical wiring and disable computers, electrical equipment, etc. But even here there is a nuance that can be hidden under the guise of an exception to compensable cases. If the agent indicated that a fire occurred after a lightning strike as a necessary condition, then he can refuse to pay, although the equipment will suffer from power surges caused by lightning, but without ignition.
Another example in which the policyholder can get into trouble is insurance in case of damage or robbery of his property by third parties. It is necessary to clarify the point about whether these third parties are employees of a legal entity, since the refusal of the emergency commissioner may be based on the fact that the actions of the employees were caused by intent agreed with the owner. The fault for damage to technical equipment, which is entirely the responsibility of the insured who allowed an incompetent specialist to work, can also be the reason for refusal.
The feasibility of providing asset guarantees against unforeseen events is beyond doubt for manufacturing enterprises, commercial companies. But to get real guarantees from a really profitable deal, a thorough study of each item is additionally required. Working with insurers is one of the ways to save your business if unplanned events occur that can lead to the loss of assets, possible bankruptcy, and a decrease in the authorized capital.
Studying and choosing the right conditions helps not only to save on payment. The prudent actions of the management of legal entities give confidence to all employees that the business will remain afloat under any likely circumstances, the consequences of which can be influenced in advance.
In most cases, insurers consider corporate property insurance to be an understandable type of insurance, which is due to the ability to reinsure risks in Europe according to favorable rates. Therefore, we can give good rates.
As a rule, losses on property insurance are paid without any problems, since most risks fall into obligatory reinsurance contracts and reinsurers bear most of the responsibility for risks under these contracts.
Contact us and we will select the best conditions for insuring the property of your company. We have solid experience in insuring various property of legal entities in various regions of the Russian Federation. When contacting regional clients, we will send you the original contracts by courier service to the guarantor.
Contact us and you will receive an offer that really deserves your attention!
