HOME INSURANCE

HOME INSURANCE

To protect ones’ property, home insurance is one of the greatest investments that a person can make. Home insurance play a pivotal role in making up your financial losses in case any disaster strikes. Here’s a guide to everything about home insurance that would help you protect your home.

What is home insurance? 

Home insurance or homeowners insurance reimburses a person for the losses in his home and for his possessions inside the home. Home insurance serves as a property insurance that provides protection to private homes against losses.

What all damages does home insurance cover?

Most home insurance policies cover the damage for

* Fire

* Explosion/Implosion

* Aircraft Damage

* Impact Damage

* Lightening

* Missile Testing Operations

* Bush Fire

* Bursting and/or overflowing of water tanks, apparatus and pipes

* Man-made Calamities

* Leakage from Automatic Sprinkler Installation

* Burglary & Theft

* Subsidence and landslide including rockslide

What all damages does home insurance not cover ?

Home insurance policies do not cover the damage for

* Loss of painting, works of art and antiques

* Loss of cash, cards, stock or other documents

* Loss or damage occurring when the home remains unoccupied, for a long period (usually 30 days)

* Loss or damage to any illegally acquired property

* If the section of the house is used for commercial purposes

* Loss to illegally acquired property

* Loss on account of livestock, motor vehicles, pedal cycles, money, securities for money, stamp, bullion, deeds, bonds, bills of exchange, promissory notes, stock or share certificates, business books, manuscripts and documents of any kinds.

What all are the things to consider while insuring a home?

A person insuring his/her home should be truthful to state the correct value and the insured object to the insurance company.

* To insure your appliances, you should clearly mention all the elaborate details like the name, the manufacturer, the value, purchase year, specifications and others for an easy settlement of claims.

* For appliances, one should ensure that the sum insured covers the replacement value of the appliance.

* It is important that you inform the insurance company of you have replaced any insured item so as the policy is revised.

* One should also inform the insurance company if they’re leaving the home for more than four years.

* If one sells the property during the insured period, the insurance policy can be cancelled and one can claim the premium back on pro-rata basis.

What is thehouseholder’s policy?

Householders’ insurance policy helps people to a large extent in case of a theft, fire or any damage to their household goods.

This policy not only protects your house from unpredictable events, but it also covers house owner’s personal properties like jewellery, laptops, audio and video equipment, furniture etc.

What all does thehouseholder’s policy cover?

Householders’ insurance policy covers the following sections

* Fire, building & contents: Fire lighting, domestic gas explosion, riot strike, storm, flood, earthquakes, landslides, bursting of tanks, pipes, etc.

* Burglary

* Jewellery and valuables: Accident or misfortune

* Breakdown of domestic appliances: Mechanical or electrical breakdown

* TV, computers and laptops: Mechanical or electrical breakdown/due to fire/burglary

* Baggage: Accident or misfortune while on holiday/tour anywhere in India

* Personal accident: Death/temporary disability

How can an apartment owner get his apartment insured?

 * Every policy is divided into two structures; cover for the building structure and cover for the building contents.

•A person getting an insurance policy for his apartment should keep in mind

that the insurance policy covers the home for its reconstruction cost and not for its market value.

* The reinstatement value is calculated on the basis of the built-up area and the construction rate decided by the insurer.

* The other important factor responsible for indicating the reinstatement value is the location of the property.