By Femi Olonisakin
For most people, buying or building a house is probably the biggest and most expensive investment they would ever make and it is vital that their investment is fully protected. All over the world, many secure their property with the aid of property insurance.

Property insurance provides protection against most risks to property, such as fire, theft and some weather damage, these includes specialised forms of insurance such as building insurance, content insurance, fire insurance, flood insurance and earthquake insurance.

It is important to mention that your property is vulnerable and it can crash down any time owing to some disaster.

So why take the risk? Prevention they say is better than cure. The cost of property insurance often depends on what it would cost to replace the house and which additional items to be insured are attached to the policy. The insurance policy itself is a lengthy contract, and names what will and what will not be paid in the case of various events.

The property insurance policy is usually a term contract – a contract that is in effect for a fixed period of time. The payment the insured makes to the insurer is called the premium. The insured must pay the insurer the premium each term.

Most insurers charge a lower premium if it appears less likely the house will be damaged or destroyed: for example, if the house is situated next to a fire station or if the house is equipped with fire sprinklers and fire alarms Building insurance Buildings insurance is designed to cover the full cost of rebuilding or repairing your property in the event of fire, storm damage, lightning strike, earthquake, damage caused by burst pipes, vandalism or explosion.

Some building insurance cover provide alternative accommodation if the house is no longer fit to live in; liability cover if damage to your property affects a neighbouring property, and help and support with access to approved tradesmen. Most people are concerned about the amount of money they would spend on repairing their property once it gets damaged by some natural disaster. With adequate property insurance in place, you can be free of this worry.

A major benefit of getting your property insured is that it covers the replacement value. Most people do not care much about the replacement value and they will lose everything in case of disasters like natural calamities. The process of getting things back on track will be painstaking in case you have not insured your property.

Buildings insurance will typically cover you for any damage or destruction to your property, including the walls, roof, windows and doors, and pipe-work.

It also normally includes your bathroom and kitchen and most built-in interior fittings. External structures, such as garages, sheds and outbuildings are often also covered but you may have to specify them separately on your policy.  Boundary walls, fencing and gates, paths and driveways and damage to electric and water supply pipes may not be covered under a basic policy so do check the small print.

Your property can be broken into at any time and the contents of the house can be stolen. Property insurance covers portable and immovable components of the house and you will be provided financial assistance by the insurance company to replace those lost or damaged. Insuring your property gets you a lot of cover. You can choose the areas that are to be covered.

Getting more coverage will surely increase the premium rates but it will decrease the premium per coverage. Contents insurance helps cover the furniture, personal possessions and valuables that you keep in your home. It does not include damage sustained to the blocks of the building or any permanent fixtures and fittings in your home.

Contents insurance mostly covers household furniture, furnishings, carpets and curtains on a new-for-old basis, personal possessions in your home, garage, shed or other outbuilding, home office equipment, such as computers or laptops, if you work from home, loss, damage or destruction to portable items and adornments such as jewellery and watches, cameras, sports and camping equipment, laptop computers and cash.

Olonisakin is the managing director of McLonsha Limited and member of the Royal Institution of Chartered Surveyors (RICS).