Apart from owning a home, it is important to secure it from various problems including man-made and natural catastrophes. The Indian insurance industry has realized this and come up with a special home insurance India
plan. These home insurance products cater to home insurance requirements of all.
The Home Insurance India plan is designed to precisely protect a residential building structure from various problems. It keeps the family protected from loan liabilities in the event of unfortunate demise of insured within the term of policy. It also guarantees that the insured individual’s family does not have to give up on the house in the event where the insured is not around to repay the house loan installments. In short, the insurance plan guarantees peace of mind and comfort of a feeling that in the absence of the insured, a specific amount will be available to repay housing loan. This ensures complete secure family home.
Home insurance is mainly a cover offered by Indian insurance companies to protect home of the insured individual against a number of risks and hazards such as natural calamities such as floods, tsunami, landslide, earthquakes, etc. Most plans also cover other unforeseen problems such as fire, theft, burglary, and many others.
Before buying a home insurance plan, it is important to know about varied plans offered by insurance companies. In India, home insurance is categorized into two parts:
- Building Insurance
- Content Insurance Building Insurance
This insurance plan offers cover to a building or its structure against damage due to man -made or natural calamities. The cover is provided to an extent of ensuring total cost of reconstruction. This is especially done in the event the insured building suffers total destruction. Here are the basic conditions under which building insurance is valid:
Riot related damage
- Destruction due to fire
- Explosion of domestic appliances such as cooking gas
- Strike related damage
- Natural calamities including flood, storm, cyclone, earthquake
- Destruction caused due to an aircraft
- Losses incurred due to personal accident or third party liability
- Landslide damage
- Destruction due to subsidence
- Bush fire Destruction caused by lightning
- Damage due to impact
This is a popular insurance plan that ensures cover for home contents including expensive jewellery, appliances, valuable items, movable goods and a lot more. Clothing and furniture are also included. The plan offers a variety of covers that a customer can choose from.
The home contents are guaranteed cover against loss or damage incurring due to the reasons listed below:
- Theft related damage
- Explosions and destructions caused by the same
- Harm or injury caused by storm or fire
- Loss or damage of valuables such as crockery, expensive crystals and jewellery
- The insurance also covers accidental destruction of plate glass set in a building’s doors and windows
- Loss or damage of electrical appliances
Precautions to follow when buying home insurance India plan:
Use home insurance premium calculator
Use a home insurance premium calculator to calculate the value of property and insurance premium accurately. These calculators will also help you get precise idea on how much you need to pay on an insurance plan.
You should read the fine print carefully. Know what is covered and excluded in a plan that you invest.
It is crucial to prepare an inventory of all the contents in your home. You need to mention the estimate market value. Also make sure you have ownership to all documents of contents.
You should determine the precise date of home insurance India renewal. Make sure you renew the plan without delay. Delay may keep you from enjoying facilities offered by insurance companies.
Age No Bar
Age usually doesn’t affect the premium of home insurance India plan. However, some insurers may refuse houses that are over half a century old! You should confirm this clause with the company prior to taking a loan.
Most companies consider cover against terrorism as optional. Make sure you confirm about this with your insurance provider.
Usually, the insurance company is not responsible for loss of cash or jewellery, especially if their value shots up to 15,000 INR or more.
Rented Home Rules
In case of a rented accommodation, only the contents will be insured under the insurance plan. The structure is not covered.
It is impossible to buy home insurance in the event it is being utilized for commercial purposes.
Usually, a claim is denied in the event where the house or building goes unoccupied for over 60 days.
Standard Exclusions in Home Insurance India Plan:
- Wilful obliteration of home/property
- War related loss, damage or destruction
- General wear and tear of a house
- Wear and tear due to atmospheric conditions
- Terrorism related cover (unless specifically covered)
Modus Operandi of Valuation
Sum insured towards the home structure is appraised. This is usually based on the reconstruction or reinstatement value of property. The basic amount insured for home contents such as furniture, electrical appliances, clothes, etc. are valued as per their market value after evaluating depreciation.
How to get the Best Deal
First, you may choose a long term plan. It saves a lot of time and efforts on renewal. It also provides amazing discounts of about 50 per cent. You should select a cover that facilitates non-occupancy of to 60 days. You need to increase cover with increase in property value. Choose a plan that allows non-occupancy up to 60 days. Bargain with agents to get the best price.