Home Insurance Add-Ons

Add-Ons Available Under Home Insurance Policy

Introduced by IRDAI, the Bharat Griha Raksha Policy is a standard home insurance policy that covers damage to your house and its contents. Along with the basic coverage, it allows you to opt for add-ons that give extended protection. Below are the key add-ons provided under the BGR policy:

1. Loss of Rent Cover

   If you have rented out your property and it becomes unfit for living after being hit by any insured perils (such as fire, flood, or a cyclone), your tenant may have to vacate. In such a case, you lose rental income. This is where the add-on comes in and helps reimburse the rental income you would have earned otherwise.

   This income is payable when your home remains uninhabitable for a particular period. Moreover, it applies when damage is covered under the BGR policy, not if it is due to exclusions defined in the policy documents.
   Therefore, this add-on protects your rental income even if your property is temporarily unusable.

2. Rent for Alternate Accommodation Cover

   If you live in your own house, it is damaged to the extent that it becomes uninhabitable. In such a situation, arranging temporary accommodation can be stressful and costly. Rent for alternate accommodation covers your alternate rented accommodation costs while your house is being repaired.

   The insurer agrees to cover the rent for a specific period specified in the policy documents. The benefits can only be availed if your insured property is damaged due to covered perils.

   Hence, this add-on protects the homeowner from unexpected out-of-pocket rent expenses during the repair process.

3. Terrorism Cover

   Acts of terrorism can cause extensive property damage, and repairing or rebuilding after such events is financially draining for any homeowner. However, with this add-on protection, your house and its contents will be covered against the damages caused by terrorism-related incidents.

   Therefore, it ensures peace of mind in an unforeseen large-scale destructive event, like a terrorist attack.

4. Removal of Debris Cover

   After a fire, flood, or structural collapse, clearing the debris is a significant challenge and adds to recovery costs. This add-on reimburses reasonable expenses for the removal of debris. According to the BGR policy guidelines, the cover is limited to 2% of the claim amount. Basically, it helps in faster and smoother restoration of your property.

5. Additional Structures Cover

   Your home often has additional structures other than the main structure, such as fences, solar panels, boundary walls, gates, garages, or small sheds. All these may also face damage due to unforeseen circumstances. In such a case, this add-on allows you to extend coverage to additional structures attached to your property. This ensures that your entire property, including additional structures, is protected. However, these structures must be declared at the time of policy purchase.

   This additional cover is primarily for homeowners with high-value solar panel setups (also sold as solar panel insurance), landscaped gardens, or outbuildings.

Other Common Add-Ons in Home Insurance Policy

These add-ons are not listed under BGR, but insurers may provide them as optional covers:

1. PA (Personal Accident) Cover - Self

   Personal Accident (PA) cover add-on ensures that if the insured homeowner suffers accidental injury, permanent disability, or death, a predefined lump-sum benefit is paid to the insured or their nominee. It provides crucial financial support during recovery.

2. PA (Personal Accident) Cover - Spouse

   Extending the same protection to the insured's spouse, this add-on ensures that the spouse receives financial benefits in case of their injury, disability, or accidental death. While personal accident cover generally focuses on individuals, many insurers offer family or spouse add-ons to the policyholder.

3. Utility Expense Cover

   Suppose your home becomes uninhabitable following an insured event. In that case, this add-on helps pay for your utility bills, covering essentials like electricity, water, and gas for a specified period mentioned in the policy, up to a certain amount.

   This additional cover type is called Additional Living Expenses (ALE), compensating for temporary housing or out-of-pocket expenses, including utilities during displacement.

4. Jewellery and Valuables

   The jewellery and valuables add-on is one the popular & mostly purchased optional coverage that extends protection beyond basic household contents to include valuable items such as jewellery, artwork, antiques, and collectibles.

Why Choose Home Insurance Add-Ons?

Here are a few benefits explained, making add-ons a powerful way to strengthen your home insurance policy:

1. Customisation

   Every home and its structure is unique in its own way. Home insurance add-ons allow you to personalise your policy as per your need & budget. Whether it's covering jewellery, solar panels, or alternate accommodation expenses, you can choose according to your preferences, instead of a one-size-fits-all plan, you pay only for the extra protection that truly matters to you.

2. Enhanced Protection

   A standard home insurance policy covers fire, natural disasters, and basic contents. But what about terrorism-related damage, rent loss, or utility bills incurred while repairing the damaged property? Add-ons bridge this gap by offering enhanced protection, ensuring your policy isn't limited to just the basics.

3. Financial Security

   Few unexpected incidents often have hidden costs, like paying rent elsewhere, replacing valuables, or clearing debris if the insured property is damaged. With the right add-ons, these costs are borne by your insurance instead of draining your savings so that you can focus on the recovery part rather than worrying about expenses.

FAQs - Home Insurance Add-Ons