Home insurance is popularly known as homeowner’s insurance. It is a sort of property insurance covering private residence.
Well, this is how we define home insurance.
Now, there’s a saying:
“A house is made of walls and beams; a home is made with love and dreams.”
There is no such place like home in the entire Universe. After all, it is a place where you and your loved ones can rejoice, weave thousands of memories that last for a lifetime. While we put our life’s savings into buying or constructing a home but we rarely realize that our home needs a protection in the form of insurance too. By investing in a good home insurance policy, also referred as home owners insurance, you can protect your home from threats. Situations like burglary, fire, earthquake or destruction of house due to riots are quite common in India.
Don’t wait for a calamity to remind you the need of buying a home insurance, opt for it beforehand!
Home insurance plans offer coverage of the liabilities that arise out of damages to the house and/or the contents due to man-made reasons like burglary, theft, etc. as well as natural calamities like fire, floods, lightning etc. Here are some of the ley features of home insurance policy:
The fundamental constituent of a home insurance policy is the coverage it offers against different damages. Home insurance policies not only protect your house but its surroundings, and the contents of the house.
Cover for the building/structure is the basic coverage that every home insurance plan offers. This protects the physical structure of the building/house/dwelling against different risks and perils. The coverage offers protection to the structure including electrical apparatus, air-conditioning, building, plumbing, heating etc.
Apart from coverage to the building, home insurance policy also offers coverage to the additional structures around the house (that might not necessarily be attached to the building). Some of the examples may be fence around the house, detached garages, retaining wall, backyard shed, mailbox, the driveway, pool etc.
Home insurance policies also offer cover for personal possessions/property or the house’s contents against different perils and risks. These might include electrical appliances personal computers, television sets, refrigerators, microwaves, air-conditioners, etc. It includes furniture such as dining tables, couches, beds, together with furnishings such as rugs, curtains etc. Most often, expensive assets including jewellery is also covered.
There is no denying of the fact that house insurance is a must; however, there are other benefits and riders to buying such a policy that will add convince you totally. Have a look below:
There are various home insurance providers in India that offer different plans as per individual needs. To ease your selection, we have listed down important points which should be compared while choosing one home insurance company over other:
Firstly, evaluate risks which your home is facing or might face in a future. For example, if you live in a flood prone area then you should ensure that your home insurance policy is covering these risks also. Also, while checking coverage, it is prudent to check if the premium fits within your budget or not. You can solicit premium quotes of individual insurers or use comparison chart to compare premium quotes.
A good company is judged by the turnaround time of settling claims. The very purpose of insurance will be defeated if you do not get a claim when it is required. So, it is worthwhile to check the claim settlement record of companies before zeroing in on one insurer.
The first and foremost characteristics of a good company is that it has customer friendly staff. Does your insurance company have competent customer service representatives who are capable enough to resolve your queries quickly? It is always important to choose a company who is well equipped to assist you at any point of time.
Home insurance covers losses to the structure and content of your home due to natural and man-made calamities.
The policy offers coverage against loss or damage to any of the insured property. However, many policies do not cover flood or overflow of the sea, rivers and lakes due to earthquake.
The contents of home are also covered against burglary or theft. The coverage will also be extended to silver articles, jewellery, precious stones and other valuable items, provided these are kept in a locked safe within your home premises.
Home insurance is meant for anyone who has a home whether own or rented. There is myth that only home-owners should buy a home insurance plan. Let us tell you case of Mr Vijay Rao and how having a home insurance policy saved him during a crisis.
Two months after Mr Rao moved to a rented apartment in Mumbai, a catastrophic fire engulfed furniture and other appliances worth Rs 8 lakh. Thankfully, he had a home insurance policy and he could manage to settle back to normal life again easily and without any financial stress.
It’s a misconception that only house owners should buy a home insurance. Although, house may belong to a landlord but it has contents which belong to you. Irrespective of the fact that whether you are a tenant or owner, buying home insurance should be your top priority.
Even, there are various insurance companies which provide exciting discounts to people who have bought over 3 home insurance covers. However, don’t let discounts make you buying those covers also which you don’t need. For instance, if you are a landlord then avoid buying a policy to cover contents of the house. Leave that to the tenant. Companies also offer discounts if you buy it for a long duration. You can insure the house for up to 10 years, which not only gives peace of mind but you also get a chance to earn lucrative discounts.
Almost every insurance company is having its own deadline within which you have to inform about your loss. These can vary between 7-15 days so make sure you do it as soon as possible. Some companies even let you do with an email or SMS. Before you file for a claim, you will have to lodge an FIR and the copy of which you need to submit with insurance company. Apart from FIR report, the other documents which you need to submit are-
Note: This is an indicative list and you may be asked to submit other documents at the time of claim settlement. Click here To Read to Make Your Home Insurance Claim Easier
Strategies that can help in bringing your home insurance premiums down are-
From free home insurance policy quotes to comparison among best home insurance providers in India, we at PolicyBazaar are here to secure your home from all damages/losses. With us, insuring your valuable possession, ‘Home’ is now a matter of a few clicks. One can buy or renew an existing policy through our viable platform. Moreover, if the presence of various insurance providers has perplexed you, then talk to our customer support staff who will guide you on all aspects of home insurance.
It takes years to build a house so extend, its life with a right home insurance plan!
What is home insurance?
Home insurance provides coverage to house and its contents against loss or damage caused by natural (flood, storm, landslide, etc.) and man-made calamities (theft, burglary, strike, riot, terrorism, etc.)
Mainly there are three insurable components- structure (building), content (material assets) and people (family members and third party). You can go for the specific coverage either for the structure or content. Also you can go for a comprehensive cover that includes both structure and content.
Why should I buy home insurance?
Your home is precious and probably the most expensive investment of your life. It is not immune from perils like fire, theft, flood, etc. Disasters are unwelcome guests who do not knock your door before intruding your home. So it is always good to be prepared beforehand to minimize any loss or damage to your home. Home insurance protects you from losing your hard earned money by insuring your house against man- made and natural calamities.
What are the perils covered under home insurance policy?
Home insurance offers protection against both natural and man-made calamities. Mainly, it safeguards your house from-
What perils are not covered under home insurance policy?
Home insurance policy doesn’t offer coverage to kutcha construction and under construction building. Some of the other exclusions of the policy are-
What contents are covered under home insurance policy?
Home insurance covers the following contents-
What is the tenure of home insurance policy?
Usually, the tenure is of 1 year, but few insurers are offering plans up to a term of 30 years.
What do you mean by reinstatement cost?
It is the cost which would incur on reconstructing the damaged property. As per standard regulations, reinstatement cost includes value of foundation and it doesn’t include land cost.
How is sum assured computed?
Sum assured for the structure and content is calculated separately in following pattern.
Sum assured for the structure
Sum assured= Built up area x cost of construction per square foot
It is computed on the basis of reconstruction value and not on its market value. For instance, if the built up area of your house is 1500 sq. ft and the construction rate decided by the insurer is Rs 1000 per sq. ft., sum insured for your home structure would be Rs 15,00,000.
Sum assured for the conten
It is calculated either from the actual cash value (ACV) of the asset or from the replacement cost, i.e., Current Market Value – Depreciation
How can I bring down home insurance premium?
Methods that can prune your home insurance costs are-
Avoid unnecessary covers= Don’t buy a cover just because it is there. Add-ons like terrorism cover or rent paid due to displacement will only make policy expensive.
Is compound wall covered by home insurance?
Yes, compound wall be covered by home insurance as long as it is not a kutcha construction.
Can I increase sum assured in my policy?
Yes, insurance companies allow you to increase sum assured value in your policy. At the time of increase in value, you need to pay premium for the increased sum assured for the remaining tenure.
Can I insure my house let out for rent?
Yes, you can insure your house as long as it is used as a residence and not for commercial purpose. Also the home should not be a kutcha construction.
What is debris removal? Do insurance companies cover debris removal?
If your home gets damaged then damaged portion may occupy space. You would have to remove debris to reconstruct your house. It is known as debris removal. There are many insurance companies which reimburse the amount spent on debris removal, subject to deductions.
Can an entire building or society be covered under home insurance policy?
No, an entire society cannot be covered under home insurance plan.
Is FIR necessary for home insurance claim?
FIR is mandatory incase of riots, burglary, strike, malicious damage, terrorism and larceny. However, it is not necessary in following situations-
Impact damage due to accidental losses
When does the insurance cover start?
Insurance coverage will start from the time your payment is received by the insurer.
What happens to the home insurance policy if I sell my house?
From the time, transfer of ownership becomes effective, home insurance policy stands cancelled. Insurer will refund the remaining premium for the balance period to the insured.
Can I take home insurance policy from 2 companies?
Yes, you can buy home insurance policy from two companies. At the time of claim both companies will pay you on a proportionate basis.
Can I make a claim on my partially damaged home?
Yes, you can make a claim on a partially damaged home.
What is the procedure to make a claim on partially damaged house?
Make sure you follow below steps to make a claim on partially damaged house-
My house is damaged due to fire. Can I go ahead, do repair work and then send bills for reimbursement to the insurance company?
If your home is damaged, never undertake repair work without informing the insurance company, otherwise your claim will be rejected. Take following steps to make a claim in case of fire accidents.
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