Home Insurance is probably one of the most neglected kinds of
insurance in our society. Home Insurance cover is also one of the broadest types
of risk coverage you can buy.
There is no place like ‘Home,’ it’s our most valued
possession and our heaven on earth. A House is one of the most expensive assets
owned by an individual. We invest major portion of our savings to own a
property but do not pay much attention to protect it from the risks arising out
of natural or man-made disasters.
Natural Calamities like the one recently witnessed by Chennai
bring the importance of Householders’ insurance policy back into focus. It is
true that we cannot stop natural disasters, but we can-definitely mitigate the
losses and make provisions to cover the risks associated with them.
In this post let us understand – What is Home Insurance
policy? What are the risks covered under a Householders’ policy? What are the
factors to be considered when buying a home insurance cover? Which are the best
home insurance plans in India?
What is Home Insurance Policy?
Home insurance policies are offered by general insurance
companies (non-life) to cover your home against risks from natural calamities
such as fire, floods, earthquakes, or landslides and also risks arising out of
burglary/ theft, riots, strikes etc.,
The policy can have various sections that may broadly cover;
The structure of the house alone (or)
Your belongings such as jewellery, furniture, electronic
appliances etc., (or)
Even both.
Some home insurance policies are more comprehensive in
extending coverage not only to your home, but also to the residents of the home
against fire and other natural perils.
These are known as package product that covers home along with providing
an accident & third-party liability cover.
Some policies also cover your rent expenses if you have to
move out to another house because your actual house has been damaged due to any
of the covered perils listed by your insurer.
Who can buy Home Insurance Policy?
Any Owner Occupant of a Flat / Apartment / Independent
Building can purchase house insurance policy for his “Building and / or
Contents, Jewellery & Valuables”.
Any Tenant and other Non-Owners of Residential Structure can
insure the “Contents, Jewellery & Valuables” in the Flat / Apartment
/Independent Building occupied by them for residential purpose.
How is Home
Insurance India Premium calculated?
Your home insurance policy premium is based on some of the
below factors;
Whether the property is owned and occupied by you or is it a
let-out property?
Whether the property is a Flat or an independent building?
Age of the property
Are you planning to take a cover for the contents or only the
structure of the house or both?
Place or location, size and type of construction of the house
Do you want to include ‘Jewellary’ in the insurance cover?
Additional covers like below are also offered along with the
basic cover. You may have to pay extra premium to include these covers in the
standard policy;
Third-party liabilities (or) Public Liability cover
Loss of rent
Cost of shifting & Temporary Resettlement cover
Pet Insurance
Accident Cover
Burglary cover
You can also have a cover for portable equipment’s such as
mobile phones, laptops, tablets etc.
Excess: An excess is the amount you must contribute towards a
claim for each event that occurs. If you opt for ‘voluntary excess’ then
insurance company will offer you discounted premiums.
[Source: http://www.relakhs.com/top-best-home-insurance-plans-details-comparison-faqs/#]
