Home Shield Insurance

What Is Home Shield Insurance?

Home shield insurance is a type of home insurance policy that provides coverage against damage or loss to your home and its contents caused by natural or man-made calamities.

It acts as a financial safety net that compensates you for repair, rebuilding, or replacement costs if an insured event occurs, such as a fire outbreak, flood, burglary, or earthquake. Depending on your needs, you can choose coverage for just the structure (the building), the contents (your personal belongings), or a combination of both (comprehensive cover).

Why Do You Need Home Shield Insurance?

Many homeowners assume home insurance is optional until a natural disaster like a landslide or flood strikes. With increasing incidents of natural calamities, short circuits, or thefts, buying a home insurance policy is no longer a luxury; it's a necessity.

Here are the core reasons why you need it:

• Financial protection: It helps in covering repair or reconstruction costs if your home is damaged due to insured perils.
• Security for your belongings: It protects the insured items or belongings, such as furniture, electronics, and personal valuables, from loss or theft.
• Peace of mind: It reduces the stress and financial burden in the event of unexpected damage.
• Tenant-friendly options: As a tenant, you can opt for contents-only coverage without even insuring the building or house structure.
• Comprehensive coverage: It offers comprehensive protection against natural disasters, man-made hazards, and accidental damages in a single policy.

Key Features & Benefits of Home Shield Insurance

A home shield Insurance policy offers several advantages that go beyond basic coverage. Here are some of its key features and benefits:

HDFC Home Shield Insurance Vs Bharat Griha Raksha BGR – Standard Policy

Here is a table showing the difference between the home shield insurance policy offered by HDFC ERGO General Insurance Company Limited and the standard BGR policy:

Types of Home Shield Coverage

Here are the three types of home shield coverage options, and depending upon your needs, you can choose one:

1. Structure-Only Cover

   This policy insures the building structure, such as walls, floors, and permanent fixtures like wiring, plumbing, or built-in cabinets, against fire, earthquake, and other perils. It's ideal for homeowners who want to protect their property's physical structure.

2. Contents-Only Cover

   This option protects your personal belongings, such as furniture, appliances, clothes, and gadgets, against theft, fire, or accidental damage. It's particularly beneficial for tenants or homeowners in rented apartments.

3. Comprehensive Cover

   A combination of structure and content coverage offers complete protection for your home and everything inside. It's the best choice for complete peace of mind and maximum coverage.

Add-On Covers Available Under Home Shield Insurance

To make your home insurance more robust, insurers offer a range of add-on covers. These can be purchased at an additional premium based on your requirements.

• Jewellery and Valuables Cover: This insures high-value items like gold, watches, and collectables.
• Portable Electronics Cover: It covers portable electronic gadgets such as laptops, tablets, and cameras against theft or accidental damage.
• Alternate Accommodation Cover: It pays for temporary housing if your home is unfit to live in post-incident.
• Electrical and Mechanical Breakdown: It covers repairs or replacement for electrical failures.
• Personal Accident Cover: It provides financial compensation in case of accidental death or disability of the insured.
• Public Liability Cover: It protects against legal liabilities if a third party is injured or property is damaged within your home premises.

Inclusions of Home Shield Insurance

While exact inclusions vary by insurer, most policies typically cover the following:

• Fire, explosion, or lightning damage
• Natural disasters, including earthquakes, floods, storms, and cyclones
• Burglary, theft, and robbery
• Damage due to riots, strikes, or malicious acts
• Water leakage or bursting of pipes
• Impact damage by vehicles, trees, or aircraft
• Temporary resettlement costs (if covered)
• Loss or damage to household contents

Exclusions of Home Shield Insurance

Here are the general exclusions of the policy:

• Normal wear and tear or gradual deterioration
• Damage due to war or nuclear risks
• Deliberate damage or illegal activity by the insured
• Loss of money, securities, or digital data
• Damage to under-construction property
• Losses due to lack of maintenance or negligence
• Items not declared in the policy schedule

Who Should Buy Home Shield Insurance?

Home shield insurance policy is suitable for a wide range of individuals, such as:

• Homeowners: In order to protect both the building and contents.
• Tenants: To cover personal belongings against damage or theft.
• Landlords: To safeguard the property structure from insured risks.
• Apartment Owners &a Cooperative Society Members: To secure jointly owned spaces.
• Individuals with valuable contents such as jewellery or electronics.

How to Buy Home Shield Insurance Online?

Buying a Home shield policy is easy and can often be done online. Here's how:

• Assess your needs: Decide whether you need structure, contents, or both.
• Estimate the sum insured: For structure, use the reconstruction cost; for contents, use the replacement value.
• Compare plans: Check premiums, inclusions, and claim service reputation across insurers at Policybazaar.com.
• Add optional covers: Include add-ons like jewellery or electronics if required.
• Fill in details: Provide property type, area, location, and coverage details.
• Make payment: Pay online and receive an instant policy document via email.

Home Shield Insurance Claim Process

To raise a claim under home shield insurance, follow the procedure below:

• Intimate the claim: Notify your insurer immediately through their helpline, website, or mobile app.
• Submit documents: Provide claim form, photographs of damage, FIR (if theft), and repair estimates.
• Inspection: The insurer will send a surveyor to assess the loss.
• Approval: Once approved, the insurer will communicate the claim amount.
• Settlement: At last, the payout amount is credited directly to your account or provided via cashless service (where applicable).

Documents Required for Home Shield Insurance

When buying or claiming your policy, you may need the following documents:

• Duly filled proposal form
• Identity proof and address proof
• Proof of property ownership or tenancy
• Purchase bills or valuation certificates (for high-value items)
• Claim form and photographs of damage (during claim)
• FIR or police report (for theft claims)

Tips to Choose the Right Home Shield Insurance Policy

By incorporating the tips below, you can find the best deal:

• Compare multiple insurers for premiums, coverage, and claim service at Policybazaar.com.
• Opt for comprehensive coverage if you own the property.
• Check the claim settlement ratio and customer reviews before purchasing.
• Avoid underinsurance by declaring the correct reconstruction and replacement cost.
• Select relevant add-ons like alternate accommodation or jewellery cover based on lifestyle.
• Go for long-term policies (up to 5 years) to save on premiums and lock coverage.

FAQs - Home Shield Insurance