A house is
just not an address where one resides, but a dream home. Today, a number of
insurance companies in the market provide insurance to protect your interests
and belongings. We are here to provide you complete information and guidance, to
help you choose the right kind of insurance policy. We are here with some
information that will give you a synopsis of the basics of Home Insurance.
most important situations that make a householder qualified to insure their
Private homes occupied by individuals
taken on lease/rent or Accommodations
Landlords or Owner of private residential condominiums used
for housing purposes.
fundamentals of home insurance declare that any residential flat or
which are by
the way being used as office or studio or for that matter, any commercial
purpose can apply for insurance coverage on condition that the premises is used
mainly for residential purpose and used for business purpose incidentally. The
amount of coverage that can be claimed depends on the cost to reinstate your
home in the event of any loss or damage.
estimated based on the following factors:
following are the basic types of insurance policies:
Special Homeowners policy which covers the structure and
all threats of loss except
those kept out in the policy.
For proprietors of co-operatives or condominiums, the
coverage may include personal property coverage and coverage prone to the
owner's unit for additions and modifications.
A Dwelling Fire Policy covering personal property against
fire, wind, explosion, smoke, flood and other hazards. Additional optional
coverage may also be available. Homeownersâ€™ insurance policies may vary in
coverage depending on their home and personal belongings in the event of a
Importance of Home
home is a place of admiration, everyone adores it. It is an abode where we find
tranquility. Many Insurance Companies offer exclusive policies, that can cover various features against
natural and man-made disasters. We acquire our assets compromising on various
other things just to fulfill our desire of having a dream home. It may cost us a
fortune to re-establish our home in case of any occurrence of damage to our
property. Hence, we need to understand the significance of home insurance and
avail the godsend opportunity to insure our home.
While we may not be able to predict any sort of disaster or
harm caused to our home, it would be our utmost responsibility to be prepared in
advance and be able to tackle any fateful incidents and catastrophes. Many
insurance companies offer insurance not only to the property, but also to
someone who gets injured in the premises of the home at the time of disaster.
Some of the home insurance policies cover a home under any kind of risks. This
means that the policy, as long is integral will cover home and complete assets
contained within under any circumstances which are otherwise not considered in
an elimination cause.
Home insurance covers a home for any damage caused by fire,
earth quake, any natural or accidental damage, or any act of sabotage under all
risks policy. However, if the policy states that the home is not covered for any
other damage mentioned above, like the one due to a flood, then it cannot be
claimed. Hence, it is our supreme responsibility to shield our home and defend
ourselves when the calamity strikes without a warning
Types of Home
Insurance has become a vital entity in todayâ€™s life. We
need insurance for everything, for ourselves, our family and for our property.
We need a life insurance policy to support our family members who can claim that
from an insurance company in case of our demise. It is very essential to have a
med-claim or a health insurance policy to take care of our medical needs in case
if we or our family members get admitted in a hospital. Similarly, we need a
home insurance policy to protect our home under home insurance coverage to
protect it from any damage and compensate the losses. Home insurance is an
important wing of general insurance, and we can find various companies that
pledge to reimburse for any kind of damage to the residential property or life.
Home insurance has become inevitable for people these days and this is clearly
seen as the companies offering home insurance are gaining huge margins serving
their clients and offering services.
Building insurance and asset insurance are the two most
important categories of home insurance that cover damage to both house and the
gear inside the house. The only thing that is not covered under insurance would
be the fabric inside the home.
are covered by both types of home insurance are given below:
1. Coverage under Fire and other hazards.
A comprehensive package that
covers the damages to the structure of home due to any of the following:
Storm, hurricane, flood &
Mutiny, strike & spiteful
Lightning or thunder strike
Explosion & Implosion
Damage due to collision by
Subsidence, landslides and
Bursting and/or overflowing of
water tanks, apparatus and pipes
Missile testing operation
Leakage from automatic Sprinkler
fire/ Forest fire.
2. Cover due to Earthquake or Seismic
activity: Covers damages caused due to earthquake.
3. Terrorism Cover: Covers damages due to acts
of terrorism.Any home insurance does not compensate as per the market values.
The valuation is done on the basis of land cost and the cost of the construction
in the premises. The insurance cover is only for the cost of the construction,
since land cannot be insured.The amount is calculated by multiplying the area
and the cost of construction per sq.ft.
4. Insurance Coverage for Contents Inside the
is only for damages or loss of asset inside the home -electronic and electrical
goods, furniture and fixtures, clothing, jewelry and any other stuff inside the
The coverage is valid for
contents under the following circumstances:
The Fire and Specials Perils
Burglary / theft or any break-in
Loss of jewelry, gold ornaments,
silver articles and precious stones kept under lock & key (security).
Fire Insurance policy
Fire insurance policy is
a commercial policy covering building, equipments, offices, contents and other
material. It is administered by the All India Fire Tariff with effect from
31.03.2001, which governs the terms of coverage, the premium rates and the
conditions of the Fire Policy.
insurance policy covers any loss or damage to any commercial property. The
fire must be a consequence of an actual explosion and the outcome loss must be
adjacently caused by such explosion. The policy also covers any loss or damage
caused in any attempt to extinguish the fire.
that can be claimed under insurance depends on the loss suffered and if the
property comes under insurance, only a fair amount is compensated.
instance, if the construction valued Rs. 15 lacs is insured for Rs. 9 lacs, then
the amount refunded in the event of fire will be only 60% of the loss.
Fire insurance policy
ruined or property harmed by water used to stub out the fire.
caused by demolition of adjacent structures/buildings by the contingent to
prevent the flames from advancing.
of goods in the effort of their removal from the premises where fire is severe.
made to people employed to put out the fire.
Types of losses which not
insurance policy does not compensate to the losses incurred by fire which is the
outcome of earthquake, invasion, act of foreign enemy, hostilities or war, civil
strife, riots, mutiny, martial law, military rising or rebellion or
due to cavernous fire, smoldering of property by order of civic authority,
robbery during or after the incident of fire, impulsive combustion e.g.
detonation of a bomb.
Categories of Insurance
articleâ€™ is applicable to such a policy and it does not consider the tangible
value of the property in settling on the amount of insurance. The insured has to
put up with a part of the loss himself. This is to verify the under-insurance of
It is an intact policy and
envelops risks that include fire, theft, burglary, third party risks etc.
Sometimes, it may also compensate loss of profits because of interruption of
business due to fire.
of policies are Valued Policy, Floating Policy and Replacement or
Insurance Policy for Home Appliance in
There is a
minimum warranty period for most of the appliances. However, the pledge covers
only manufacturing flaws and does not afford losses due to electrical or
mechanical collapse such as overloading, excessive pressure or voltage
house and property are guarded from damage and threat even by the traditional
traditional householdersâ€™ policies account for the insurance of house and
property from damage and threat but do not offer to protect them from the
expenses of paying for costly repair and replacement of household machines.
appliances insurance is unambiguously designed to squirrel away the person from
an unanticipated loss or repair of any expensive household machinery/equipment
in case of breakdown.
involved in the repair of these items can be overwhelming. Hence it is advised
to go for a home appliances insurance policy which can compensate for items
ranging from kitchen appliances that includes items like dishwashers,
refrigerators, electronic gadgets, computers and also diverse items like vacuum
cleaners, washing machines, lawn movers etc.
Important points to be remembered
when going for a Home appliances insurance policy
description of the insurance policy is to be taken into account, apart from the
cost of the insurance.
information is to be gathered from the insurance provider about the procedures
to be followed in case of any equipment failure.
policies offer the liberty to select a contractor to service the equipment,
while many also offer selected contractors and assign them the responsibility of
repairing the item.
policies compensate for the equipment by allowing the insured to select a
replacement depending on the item, cost etc, while others may offer a swap of
the item only from a particular list of items.
policies cover for the item, provided a set of safeguard measures have been
applied to the item during its maintenance. Hence we need to inquire about the
required maintenance schedule to keep the guiding principles up-to-date and
Rules and Regulations:
appliances policy can be included to be a part of the general householderâ€™s
package policy. The amount of compensation depends on the sum insured and the
market value of the item at the time of damage. Complete information is to be
provided to classify the item including the details of Serial No., Frame No.,
Batch No., Make & Model of the equipment etc.
Insurance Policy for Home Robbery in
covers for the loss or damage of any property due to theft, burglary or break-in
of a home. This policy is not only applicable to property, but also to personal
possessions. This is also applicable, when the loss of item is not just due to
theft/ break-in by force or aggression, but also in circumstances with no
evidence of them.
Items covered under Home Burglary
The lost of
any item is compensated only if the burglar/theft happens during the policy
period. The policy, apart from covering for loss of items, also reimburses for
the damage caused to premises. The company takes into account, the amount
insured and the market value of the items at that time, whichever is lower to
recompense for the loss.
Items NOT covered under Home Theft
does not include livestock/farm animals, automobiles, pedal cycles, money,
stamps, deeds, bonds, bills of exchange, currency, promissory notes,
certificates, official documentation, business books, manuscripts etc.
list of items needs to be prepared, that covers the details and description of
all the items if the home burglary policy is not included in the house holdersâ€™
policy is offered, the insurance company carries out a thorough inspection of
the items through its agents and only then proceeds with the documentation and
rest of the formalities.
Cost involved in Burglary Insurance
can be made in monthly installments like for other policies. The premium amount
varies, depending on the value of the items being insured on annual basis. The
insurance company should be notified within 2 weeks in writing with complete
details of the items lost with proof in order to authenticate an insurance
Home Insurance Claims
Insurance Policy is to cover the losses in the event of any harm done to your
claim for damages caused to their premises and items, which are due to man-made
disasters and natural calamities. Home Insurance also covers for loss or damage
caused to personal belongings as well. An Incident Manager can be appointed to
claim for the loss of any damage caused due to flood or fire.
We need to
ensure the following services are provided by the Insurance Provider before
availing their service:
services are available round the clock. (In the event of a major catastrophe
like fire/flood/ earthquake etc).
an automatic replacement of the items through their network of agents/ suppliers
who work to process the coverage, without having to cater out time and efforts,
which can be in turn be availed to get back to normalcy.
There is a
network of surveyors to come out and perform the valuation of the property and
items before coming to terms.
Steps to claim
the insurance provider immediately after any damage caused to the property/items
in order to claim them.
the complete paperwork with documentation of the extent of damage also taking
picture or video of the premises/items to assess the degree of damage.
We can also
undertake temporary repair activities to avoid further damage cause to the
Make a list
of the items that are lost or damaged completely to avail the replacement cost
coverage. It is utmost important to have the complete list of items.
In the event
of any natural disaster, or calamities, it is advised to be in touch with the
insurance company and the agent. Also, patience is very important and we need to
wait for our turn as the cases are handled on first come basis and also
depending on the extent of loss.