Is your home insured

Infrastructure is at it’s peak today and each building has ample security then how does one explain the terrifyingly high number of House break-ins in the city making it pertinent everyone to insure their property.

When you invest in buying a house it is to give you security for the years to come but at the same time one forget to ensure the security of the house. Home insurance in India is a very neglected insurance cover but when you don’t forget to take travel insurance then why do you not make sure that the house you come back to is insured as well. After all, it’s your hard earned money, peace of mind and security that should not be compromised upon and the best way to protect these is by taking the right home insurance.

What is Home Insurance?

Home insurance plans allow you to protect your house and household items against fire and other perils, such as theft, burglary, accidental breakdowns, and so on. If you intend to buy householders' insurance, you should purchase a policy that provides cover for your house as well as all the contents in it. However, do keep a few points in mind:

3 most important points to remember while buying a Home Insurance Policy:

  1. Make sure that you read and understand the policy - coverage, exceptions, and exclusions in the plan. Your cover, therefore, should include your house, your belongings, your liability to others if some mishap your policy should help you to rebuild your home and replace everything in it.
  2. Take an inventory of your possessions - If you have to file a claim, two things need to be done - prove you own certain items and verify their value. Some insurance companies advise clients to go through their homes with a video camera, walk through each room, and ensure that you have everything you own on tape. Keep the tape in safe custody.
  3. Always make sure that you update your policy value - to cover various assets that you might add to your house as well as the rate of inflation. Also, ensure the amount of cover taken is realistic; especially if you have refurnished your home. occurs, and your living expenses if you are forced out of your house. Basically, if a disaster occurs.

Who is eligible to avail a Home Insurance policy?

Any resident Indian who is the owner and / or occupant of the property can purchase a Home insurance Policy.

Is there an age limit on the property for it to be insured?

No there is no age limit to buy a home insurance policy

What does a Home Insurance cover?

The covers provided are:
  • Fire and Special Perils -Building & Contents
  • Burglary - Contents (optional)

What are the key features of a Home Insurance Policy?

Home Insurance: Key Features of Fire and special Perils - Building Applicable to any residential building
  • Covers building against risks like Fire, Lightning, Storm, Flood, Riots, Strike and Malicious Damage
  • An individual with an independent house or a flat can opt for this benefit

Home Insurance: Key Features of Fire and special Perils - Contents

Covers articles like valuables, consumer durable, personal belonging, specified items etc against fire, lightning, storm, flood, indundation, riots strike and malicious damage.

Home Insurance: Key Features –Burglary of Contents

  • Covers articles like valuables, consumer durable, personal belongings specified items etc against burglary and theft
  • Sum insured for this cover has to be similar to the fire cover for contents

What is the procedure to calculate sum insured for the structure of home?

The Sum insured is calculated by multiplying the built up area of your home with the construction rate per sq. feet.

Is the sum insured calculated differently for structure of home & it contents?

Yes, the sum insured is calculated differently for the structure & for its contents, Sum Insured for the structure is calculated based on the Reconstruction value. Whereas the contents of your home such as furniture, durables, clothes, utensils, jewelry, etc. - are to be valued on market value basis i.e. the current market value of similar items after applying depreciation. Depreciation does not apply for jewelry.

Can a person living in a rented house have a Home Insurance?

Yes, one can take home insurance for contents like Household Appliances, furniture & fixtures, Jewelry etc. which provides cover against fire, natural calamities and burglary.

If I use my Home for business purposes, can I insure it?

No, Home used for business purposes are not covered

If I have a home insurance policy with two different companies will I be benefited from both?

If you have a policy with two insurance companies, at the time of a claim both the insurance companies will pay on proportionate basis. Hence it's advisable to take the policy from only one company so as to enjoy complete benefits of the policy.

What are the documents required to be submitted in case of a home Burglary Claim?

  1. Original Invoice giving value of the item stolen.
  2. Replacement cost/ Repair cost.
  3. FIR
  4. Final police report
  5. Claim form

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