House insurance policy insures house against
natural and man made disasters. Read about house insurance policy in
India.
Home Insurance, India
Every man has a dream to own a house one day. For an
ordinary person it takes a whole lifetime of savings to build a house.
And one cannot predict a natural calamity like earthquake. In recent
times we have seen what havoc an earthquake or any other natural
calamity such as floods, landslides and torrential rains can wreck.
Hence home insurance is very important.
Home insurance policy also protects against other hazards like gas
cylinder explosion, fire due to electric short circuit as well as
man-made disaster like burglary.
Home insurance policy available in the market covers broadly two
things:
- Building structure
- Contents inside the home
Insurance Covers for a Building Structure are:
1. The Fire and Special Perils Cover
This is a comprehensive packaged cover that covers damages to the
structure of home due to
- Fire
- Storm, tempest, flood & inundation
- Riot, strike & malicious damage
- Lightning
- Explosion & implosion
- Aircraft damage
- Damage due to impact by vehicles
- Subsidence, landslides and rockslides
- Bursting and/or overflowing of water tanks, apparatus and pipes
- Missile testing operation
- Leakage from automatic Sprinkler installations
- Bush fire
2. Earthquake Cover: Covers damages to the structure
of your house due to earthquake
3. Terrorism Cover: Covers damages to the structure of your house due
to acts of terrorism
A home insurance does not cover the market value of the home. The price
of the home includes the cost of the land and the cost of constructing
the building structure on this land and the land cannot be insured. The
insurance cover is only for the cost of constructing the building. The
sum insured is calculated by multiplying your home area by the
construction rate per sq. feet.
Insurance Cover for Contents Inside the Home
This cover is only for damages or loss of the contents inside the home
-electronic and electrical goods, furniture and fixtures, clothing,
jewelry and any other contents inside the home.
The covers that can be taken for the contents are as follows:
- The Fire and Specials Perils Cover
- Earthquake Cover
- Burglary
- Loss / damage to contents due to burglary or an attempted
burglary
- Loss of jewelry, gold ornaments, silver articles and precious
stones kept under lock & key
All the contents are covered on the market value of
the items. This means that if there is a loss, the claim would be paid
on the value of purchasing a similar new item, minus depreciation.
