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Everything to Know About Home Insurance and Accidental Damage Cover

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Published on July 22, 2021. EST READ TIME: 3 minutes

Like most people, if you have invested a fortune in building or buying a house, it makes sense to keep it safe. Home insurance or homeowner’s insurance safeguards your home and its contents against natural calamities, manmade activities and other unforeseen circumstances. Even if you live in a rented apartment, a home insurance policy helps cover unforeseen circumstances and saves you from spending on expensive repairs. From fire and theft to electrical breakdowns and accidental damages, home insurance in India covers it all. To know more about the accidental damage cover, read on.

What is accidental damage cover in home insurance?

Accidental damage protection is one of the most important covers in home insurance. In case your home suffers damage due to an unexpected event, the cover will cover the expenses. For instance, in case a thief enters your property and breaks your television set or causes any damage to the furniture or plumbing fixtures, your insurer will bear the costs and save you from sudden expenses.

How does accidental damage cover help when added to home insurance?

Accidental damage protection covers your home and its contents against a range of accidents that lead to financial loss or damage. It basically covers any damage that is caused due to a non-deliberate and unexpected external action. For instance, if your television or refrigerator suffers damage during transit or you accidently spill paint on the carpet, the insurer will cover the expenses. While accidental damage cover is included in most home insurance policies, some insurers may offer it as an add-on cover.

Accidental damage covers any kind of unintentional damage to the contents and fittings of your home, such as:

• Television set, refrigerator, air conditioner and other electrical devices and appliances
• Furniture and fixtures
• Pipes and sanitary fittings
• Electrical wiring
• Floor or carpet

What are the exclusions under an accidental damage cover?

The following are excluded from accidental damage cover:

• Damage to stamps, bullions, coins, artwork, and collectibles
• Accidental damage to old content, mostly those that are more than 10 years old
• Accidental damage to your property because of third party construction
• Damage due to war, invasion, and similar events
• Damage due to wilful misconduct

Tips to find the best home insurance plan

Are you planning to get a home insurance policy? Here are some tips to help you choose the best plan:

1. Understand home insurance: First and foremost, it is important to understand what home insurance is and how it works. You can research online and read the terms and conditions of different home insurance policies. If you are looking for accidental damage protection, find out if it is included in the policy or offered as an add-on. This will give you a better idea and help you identify your requirements.

    

2. Shortlist reputed insurance companies: Do some research on the insurance providers in your region and shortlist a few reputable insurance companies. You can then go through their websites, read their policy terms and conditions, and compare different policies online. Make sure you compare all the important features, such as coverage, inclusions, exclusions, premium and deductibles. You can also ask family and friends for recommendations.

    

3. Check their financial background: Before zeroing in an insurance company, make sure you check their financial background, claim history and claim settlement ratio. Go for an insurance company with a high claim settlement ratio.

    

4. Calculate insurance premium: This will give you an idea of the amount you will have to pay every month or year for your home insurance policy. You can also take the help of an agent to ensure you are not over-insured or under-insured.

    

5. Zero in on a suitable insurance policy: Once you have checked and compared the home insurance policies of the shortlisted companies, select a suitable plan. You can also customise your policy with important add-on covers like accidental damage protection for better coverage.

Conclusion

Although home insurance in India is not mandatory, availing it is a wise decision. This is particularly important if you reside in a region prone to floods, earthquakes and other natural calamities. Besides that, the accidental damage cover in the home insurance policy offers additional protection to your home and its contents against accidental fire, breakage and damage. Also, when taking home insurance, make sure you research and opt for adequate coverage to safeguard your home and belongings against uncertainties.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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