A home insurance policy offers much peace of mind to the owner of the house. A house is a dream come true and one can only do so much to preserve and conserve its value. An adequate home insurance policy is the first step in that direction

A home insurance policy offers protection for structural damage as well as damage/loss of contents of the house. It covers against damage or loss arising due to:

  • Natural Calamities
    • Flood
    • Fire
    • Storm
    • Earthquake
    • Landslide etc.
  • Man-made clamities
    • Theft
    • Burglary
    • Strike
    • Terrorism
    • Riots, etc.

Climate change has brought about stronger impacts from the nature off late. The cyclones in Bay of Bengal and Arabian seas undermine our large population centres. Earthquakes have been increasing in intensity and frequency. We need to be vigilant against these and a proper home insurance policy helps manage the risk to an extent.

It’s best to go for a comprehensive cover since that covers the house, additional built up structures on the premises, contents of the house, electrical works and so on, against a multitude of risk factors and calamities as listed above. Some people also opt just for fire insurance. However it’s advisable that one opts for a comprehensive cover. Premium rates are generally quite low and the peace of mind offered is totally priceless.

Tenue of Home Insurance policies

  • Building Structure only: 1 to 30 years
  • Home Contents Only: 1 to 5 years
  • Building Structure and Home contents together: 1 to 5 years
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While the benefit of peace of mind against potentially huge financial losses can’t be stresses enough, let’s try and enumerate a few reasons:
  • It saves you truckloads of money should any mishap occur. Something even as ridiculous as a tree falling on a house to damage sections, or a vehicle ramming into a wall can potentially be covered
  • You can get a loan against your property only if it is insured
  • • A home insurance policy will secure you against legal and 3rd-party liabilities in the unfortunate event of an outsider suffering any injury in your house (assuming it’s not deliberate on your part)
  • Appliances, furniture and other contents are covered
  • It covers damage even if you are away from home
  • Some policies offer alternative accommodation in case of extensive damage till the house is repaired/rebuilt
  • It covers for losses arising out of man-made traumatic events like theft and burglary as well

yes you can buy a limited scope policy which covers only the contents of the house and not the structure(s) itself.

Factors to consider are:
  • Consider the coverage and premium to be paid for the same
    • Evaluate the risks, and rank them according to probability of occurence, highest probability occurence at the top.
    • Now look for policies which cover all these risks and more, at a price that you can afford
    • Do not make price your first consideration though. First look at the basic comprehensive inclusions and then work with that
  • Claim Settlement Ratio of the insurer
  • Insurer’s reputation, tenure and customer service

It is possible to increase the coverage by paying extra, to include jewellery. However these need to be kept in a separate safe in the house and be declared beforehand. Contact your insurer for details.

Here is a typical list of exclusions. However the list may vary from insurer to insurer.
  • Loss/damage due to wear and tear and depreciation
  • Loss of cash
  • Loss due to war, invasion or the act of a foreign country
  • Loss/damage due to over usage or excessive pressure on electronic equipment
  • Loss/damage due to volcanic eruptions
  • Any pre-existing damage
  • Check with your insurer regarding coverage due to earthquake related damage

You can buy a home insurance policy by directly talking to an insurance company or an authorized agent. You can also buy it seamlessly online by visiting your chosen insurer’s website. We have sorted the insurers for you on this page check here

Keep the following information and documents handy while buying home insurance:
  • Whether you are buying as home owner or tenant
  • Period of policy you require
  • Coverage you need: Structure only, or including contents
  • Location of the property
  • Age of the property
  • Type of property
  • Personal information
  • Keep the home ownership/tenancy papers ready. The insurer may ask for the same

A typical step-wise procedure for filing and getting claim would be:
  • Assess your damage
    • Analyse, assess and record the extent of damage in detail
    • Take pictures and videos of damage
    • Ensure not to touch or tamper with the damage
    • Include costs such as labour etc. in calculating extent of damage
  • File an FIR where appropriate and/or mandatory, such as loss/damage due to theft or burglary
  • Other documents that may be required:
    • Fore brigade report in case of loss/damage due to fire
    • Medical certificate in case of death or disability
    • Suppliers’ original invoices for replacement, if applicable
    • Invoices of owned articles, if available
    • Repair estimates
    • Court summons, if any
    • There may be more documents. Your insurer can provide the full list
  • Inform the insurance provider
  • Within 48 hours the insurer will send a surveyor, who will prepare a report
  • Submit all required documents to the surveyor who will submit the same to the insurance company along with the report within 7 days
  • Upon satisfactory investigation, your claim will be honoured by the insurer

It’s the cost to be incurred on rebuilding the damaged structure. It does not include the cost of land.

A general formula to calculate home insurance coverage is as follows:

Sum assured for the structure: Built up area x Cost of construction per square foot. The construction rate is determined by the insurer as per market rates and is independent of the original cost of building the house.

Sum assured for contents: Current market value of the contents- Depreciation cost

yes it can be. However contents of individual units/flats will not be covered.

You can get refund pro-rate on your policy, upon transferring the title. The policy stands cancelled immediately thereafter.

Yes you can. At the time of claim, both policies will settle proportionately

Yes you can. At the time of claim, both policies will settle proportionately Click here.

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