2026 update: voluntary property insurance protects real estate, equipment, goods and other assets only against the risks expressly stated in the contract. Before signing, agree on the insured value, limits, deductible, territory, exclusions and the procedure for proving a loss. The amount of the payment depends on the terms of the contract and the documented damage.

Buy Voluntary Property Insurance / Property Insurance

Voluntary property insurance. Property is the main capital of any company.

Consumers call this type of insurance by different names, but the correct name is voluntary property insurance. The main purpose of property insurance is to protect the property holdings of both legal entities and individuals against damage and destruction. There is certainly no more effective alternative instrument for protecting property interests than property insurance. Polis Re strongly recommends concluding a property insurance contract and thereby keeping your property safe.

Who needs property insurance

For companies, a property contract is a way to keep the business running after a fire, flood or theft: to rebuild a building, replace equipment, restock inventory. For private individuals, it protects an apartment, a house, interior finishing and household belongings. For more on programmes for organizations, see the business property insurance section, and for private clients, apartment and house insurance. Banks and leasing companies often require property insurance when an asset is pledged as collateral or leased.

Insured events under a property insurance contract

  • Natural disasters
  • Earthquake
  • Unlawful acts of third parties
  • Bursting of water supply and other systems
  • Fire, lightning strike, explosion

The following may also be covered:

  • Business interruption
  • Additional expenses
  • Property in transit
  • Insurance against terrorism and sabotage

What property can be insured

Any movable and immovable property, except:

  • Cash and securities;
  • Precious metals in bars;
  • Antiques;
  • Land;
  • Nuclear energy risks.

Sum insured for property

  • The replacement cost of the property.
  • The market or appraised value of the property.

It is important that the sum insured matches the real value of the asset. If property is insured for less than its actual value (underinsurance), the contract may provide for a proportional payment: the insurer will compensate the damage in the same proportion as the sum insured bears to the value of the property. Overstating the sum, on the other hand, will not increase the payment beyond the actual damage, but it will make the policy more expensive. For expensive assets it is sensible to rely on an independent appraiser's opinion or accounting data.

Territory of property insurance

The insurance territory is limited to the borders of the Republic of Kazakhstan and must include a specific address. If property is moved between warehouses or is in transit, this must be agreed separately in the contract.

Rules of voluntary property insurance

Property insurance is provided on the basis of the property insurance rules. The rules are part of the contract: they describe the definitions of risks, exclusions, the obligations of the parties and the payment procedure, so you should read them before signing.

What is usually not covered

The specific list of exclusions depends on the insurer's rules, but most contracts do not compensate:

  • natural wear and tear, corrosion, gradual deterioration of the property's condition;
  • intentional acts of the policyholder or its employees;
  • losses from military action or civil unrest, unless they are included in the cover;
  • equipment breakdowns caused by internal defects, unless machinery breakdown insurance has been arranged;
  • damage resulting from a breach of the agreed safety measures: a disabled alarm, a faulty fire-protection system, absence of security where it was a condition of the contract.

What to do when an insured event occurs

  1. Notify the insurance company of the damage within 3 days.
  2. Draw up a report assessing the damaged property.
  3. Submit all the necessary documents to the insurance company in accordance with the insurance contract.
  4. Write an application stating when, where and under what circumstances the insured event occurred.
  5. In addition, list the damaged or destroyed property.

Until the insurer's representative has inspected it, do not remove or repair the damaged property unless this is necessary to prevent further damage. Photograph and film the damage, keep the remains of the property and receipts for urgent expenses.

You will then need to provide all the papers required to receive compensation. This list includes:

  • The insurance policy
  • A receipt for payment of the insurance premium
  • Proof of the insured event (a report drawn up by a competent authority)
  • Documents showing the causes of the insured event, as well as the damage caused.

Deductible

One of the conditions of property insurance is often the setting of a deductible — the unpaid share of the damage.

The size and type of the deductible are set by the contract or the insurance rules, either as a percentage of the sum insured or as an absolute amount. There is a precise relationship between the size of the deductible and the rate: the smaller the deductible, the higher the insurance rate, and vice versa.

A deductible can be conditional (if the damage exceeds its amount, it is compensated in full) or unconditional (its amount is subtracted from every payment). For a business with many small losses, a reasonable unconditional deductible helps reduce the cost of the policy without losing protection against large losses.

What to look at in the contract

  • the full list of insured property with addresses and values;
  • the wording of the risks: for example, whether flooding from neighbours is covered or only the bursting of your own systems;
  • limits for individual risks and per event;
  • the type and amount of the deductible;
  • the method of calculating the payment — taking wear and tear into account or at replacement cost;
  • the policyholder's obligations to protect and maintain the property;
  • the deadlines for notifying of an event and for payment.

Common mistakes

  • insuring only the building without the equipment and inventory;
  • failing to notify the insurer of a change of address, a redevelopment or a change in the type of activity;
  • understating the sum insured to save on the premium;
  • lacking documents that confirm the value and existence of the property.

You can estimate the approximate cost of a policy for an organization in the business property insurance calculator.

If you still have questions, the specialists at Polis Re will be glad to help. You can also get a consultation and compare the offers of several insurers.