With the increasing number of houses in the country, the importance of home insurance is also increasing. Boom in the real estate industry really increases the significance of home insurance. How many of you really understand the significance of home insurance? most of the people are not aware of its benefits. Home is a cover against the possible damages to your house. If any damage occurs to your home, company will pay for that. Suppose if your home is destroyed by fire, earthquake or any other natural or un-natural calamities then what will you do…..??? So it very important to cover your house with a home insurance to save your home from damages.
Benefits of home insurance are many so it is necessary for home owners to about the details of home insurance.
In standard home insurance package you may find different kinds of coverage but most of the package covers repairing and rebuilding the house. But now due to concentrated competition in this sector companies are providing other benefits also.
Always keep in mind, it is very important to read and understand the home insurance policy terms and conditions so that you will not have to regret later.
Insuring the building or building structure is important since it provides you security against foreseeable losses in case your building is destructed and harmed in any natural or man-made calamities. A home insurance policy must cover expenditure to rebuild your home in the event of it being totally destroyed or damaged to the point that complete rebuilding is essential (in eventualities like earthquake, fire accident, etc).
Most of the Indian Home insurance companies offer plans that insure the building structure of your home for its reconstruction value. This coverage includes only the cost incurred to reconstruct the home if it is damaged and not for its market value such as the cost of land etc.
Sum insured is calculated by multiplying the built up area of your home with the construction rate per sq. feet.
Contents insurance normally offer coverage against the natural calamities, is optional in home insurance policy but due to increased risk of natural calamities, fire and burglaries, demand for content insurance is increasing.
Contents insurance for home insurance plans generally includes the following protections;
Protection to movable goods
Protection to possessions or contents in the house
Anything that is not a fixed parts of your home, for example your appliances, electronic goods, furniture and clothing, etc.
The insured amount given against the perils for building or structure and its contents is assessed either on 'reinstatement value basis’ or 'market value.
Reinstatement value - Is the value for replacing the item with a new item of same type and make.
Market value - Is the reinstatement value less depreciation depending on the age of the item.
Perils or risk covered under home insurance policy differs from company to company, it is not necessary that all the home insurance policies will cover the natural disaster (flood, earthquake etc.) So if anybody has a house in the area prone to flood or earthquake should take additional home insurance policy which covers this type of coverage also.
There are many policies which cover the personal things also which are found in the house. And if you have jewelry, silver or other expensive and costly things in the house then you need to have a personal property endorsement for all the items. Only by doing this you can get its total value if the things are lost or damaged.
Fire, Explosion, lightning, thunder bolt, earthquake.
Burglary, house breaking or any attempt of threat.
Riot strike, labour disturbance and malicious act.
Aircraft and other Aerial devices or articles dropped there from as well as falling trees.
Bursting or overflowing of underground water or sewerage pipes.
Flood, Typhoon but excluding rain damage except when occurring during or immediately after typhoon.
Impact by Road Vehicle.
Home insurance provides you with financial protection against any damage your property might occur. It is a small amount you pay for the peace of mind that brings with it and the content that your property is insured and protected against all hazards. Home insurance policies cover a home under the all risk clause unless otherwise noted in an exclusion clause
See Also: FAQ on Home Insurance
Insurance claim amount in the insurance policy is very important element for both the insured and insurance company. Because it is the benefit which insured gets at the time of any loss to their home and it is the amount which insurance company has to pay at the time of claim settlement.
Submitting claims for home insurance policy is relatively a simple process. If the damage is really worth notice it’s a matter of few days to get the amount claimed. Most of the claims are handled very quickly.
But this is not the case every time. In some cases getting the claim amount takes a lot of time. If you make 2-3 claims at the same time, insurance companies may cancel the claims. So you should be very careful in making claim.
Steps for claim settlement are given below :
Inform insurance company with policy details.
Provide all relevant information regarding your policy and claim, so that your claim request is authenticated.
After that request will be validated by company’s claims department and your request will be registered. A surveyor is appointed within 48 hours.
All the relevant documents are collected by surveyor. Surveyor submits final survey report along with documents within 7 days.
If company does not appoint a surveyor then it sends a letter of requirement to the insured. And insured have to submit all the required documents within 24 hours of claim intimation.
After receiving the documents the claims department processes the claim within 7 days. If the claim is approved a letter is sent to insured giving the approved amount of settlement with the discharged voucher.
Once if the insured sends the receipts of the discharged voucher the payment cheque will be released.
While making the claim you should have all required documents with you. You should keep your entire document ready, before you proceed with claim procedure. You should have photographs or videos of the home before and after the damage.
Following are the required document which should be submitted while making claim.
Duly completed and signed claim form.
Xerox copy of Home insurance policy.
Copy of FIR.
Final Report from police.
Copy of all invoices, price lists, repair estimates.
Home insurance in India is quite cheap as it provides mainly structural protection and does not depend on the cost of the location you stay. It can be as less as INR 50 per Lakh insured.
Home content insurance also covers art work you may possess but for expensive art worth Crores you may need a separate art insurance policy.
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