What is Property Insurance and Why is it Important?

Property is one of the most valuable and essential assets a person acquires through years of hard work. Our homes, apartments, offices, and other real estate represent us and are at the center of our lives. Unfortunately, these properties are also vulnerable to various risks—fires, floods, explosions, natural disasters, and more. Property insurance is one of the most reliable tools to protect us financially in such unexpected situations.

What is Property Insurance?

Property insurance is a type of insurance where, in the event of damage, destruction, or exposure to other risks of immovable property owned by individuals or legal entities, the insurance company compensates for the damage.

Thanks to this insurance, in the event of risks occurring at your property, the costs of repairs, restoration, and other financial burdens are covered by the insurance company. Thus, both your property and financial stability are protected.

Two Main Types of Property Insurance

1. Compulsory Property Insurance

According to the legislation of the Republic of Azerbaijan, property owners are legally required to insure their real estate. This is a legal obligation, and every home and apartment owner must obtain this insurance.

Compulsory property insurance covers the following risks:

• Fire
• Explosion
• Earthquakes and other natural disasters
• Flooding and pipe bursts

This type of insurance is set according to standard amounts and compensates within specified limits in the event of damage.

2. Voluntary Property Insurance

Voluntary property insurance provides additional protection based on the policyholder’s preferences. With this type of insurance, you can protect your property against a wider range of risks and insure higher damage amounts with broader limits.

Voluntary property insurance offers the following advantages:

• Broader coverage (theft, vandalism, intentional damage, third-party liability, etc.)
• Value-based insurance (based on current market value)
• Customizable packages tailored to individual needs
• The customer can choose the insurance amount and terms

“Yuvam” – Complete Protection for Your Home

With the “Yuvam” product, you can easily obtain both compulsory and voluntary property insurance. Thanks to our digital approach, there’s no need to spend hours gathering documents or visiting offices—your home can be fully insured online in just a few minutes.

In addition, “Yuvam” offers you the following benefits:

• Insurance without the need to submit photos or videos
• Broad risk coverage
• Fast claim payment process
• Subscription-based monthly payment (starting from just 4 AZN)

Property insurance is not just a legal obligation—it’s also a smart financial decision. Be prepared for unexpected events and ensure the safety of your family and property by choosing the “Yuvam” insurance product.