What follows is a list of possible situations that can result in damage – even permanent – of your household appliances and white goods:
1. White Goods Damaged by Power Fluctuation
A sudden surge in power can damage your television, air conditioner or refrigerator. It can even lead to a huge loss and therefore you need to be prepared beforehand as a lot of insurers do not cover such damage. Electrical equipments can be covered by insurance if destroyed by fire caused due to power fluctuation or short circuit (fire not caused by any wilful negligence).
There are some home insurance companies that cover mechanical and electrical breakdown of equipments not more than 10 years old.
2. Robbed of your Assets
You don’t need to worry about losing your goods to burglars if you have the right home insurance policy. You can insure your valuables, such as jewellery and gadgets, against such events as burglary and robbery. In cases of theft, you have to file a First Information Report (FIR) for the stolen goods before filing for a claim. But your claim might be rejected if the culprit turns out to be a domestic help or a relative.
However, there are insurance policies that cover incidences of theft irrespective of your relationship with the culprit.
3. Natural Calamities Destroying Assets
Damages caused to goods by natural calamities (such as cyclone, flood, storm, and typhoon) are always compensated under the home insurance policy. However, the extent and type of damage varies in every situation.
The relevant authority of your area is required to declare the type of natural calamity that occurred for a quick approval of your claim. Your householder’s policy covers damage of house due to collapse of man-made structure or uprooting of a pole or tree, etc. But, instances of damage caused by rain water are not covered by the insurance company unless the authorities deem them as floods.
4. Honey our LED TV Broke!
Sorry, but it’s time to worry. Your home insurance policy covers the damage caused to household goods but carelessness is not forgiven! Claims for goods destroyed due to personal carelessness are rejected. Bear in mind that the policy covers goods against risks of burglary, fire, earthquake, etc. but not wilful damage or recklessness.
Today, companies offer numerous home insurance policies that provide wide coverage-
- Reimbursement of goods repair cost
- Compensation for total damage, subject to depreciation
- Electrical and mechanical failure of electronic items
- Accidental damage of equipment including the audio-video gadgets
Before finalizing an insurance policy, it is imperative that you read the policy documents carefully for understanding the terms and conditions. The indemnity cover cannot be availed without depositing the compulsory deductions that can be 5%, or some defined percentage of the claim amount, or Rs. 2,000-20,000. In some cases, there might be some depreciation in the deductible depending upon the age of the gadget.
Say bye to your worries by opting for the assets protection cover of home insurance plans!