Your
home is heaven! The home we live in is the ultimate destination from wherever
we are going back there, school, college, office, picnic, outing, movie.
Throughout The day you struggle with your responsibilities and assigned tasks,
you get tired, exhausted even if you completely drained out there's a hope of
going back home which is the most incomparable feeling ever. There is a sense
of reliability and relaxation with our homes. Our home means the world to us
and it took years to earn it and make it own to live a comfortable life the way
we want. It's not only a home but the emotions, connections, hard work,
desires, aim, a lot of savings, and what not? It protects us from all the
external influences such as prickling sunlight, dusty wind, heavy rainfall,
pollution and many other things. Therefore we all need to make sure that we and
our houses must be safe in any condition. Any loss to our house can affect the
financial condition very badly. Therefore you must have to take care of this.
How? Home Insurance Policy!
WHAT IS HOME INSURANCE?
Home
insurance is a form of insurance that covers loss and damage to your house
along with the contents of the house. Though home insurance is not mandatory
as per legalities in India, it is quite necessary for the financial safety.
People buy big and luxurious properties for their living and think it's done
but what they need is to safeguard the property. For your understanding, home insurance policy is an agreement
between the homeowner and insurance company (insurer). The insured
(policyholder) promises to pay a fixed amount of premium to cover unforeseen
losses as per the insurer's guidelines.
Owning
a house is one's big dream and one works hard to build and buy his/her own
house. It is equally important to protect this dream. Incidents like fire can
damage a house in minutes. And, that fire may be caused due to any reason such
as an electrical spark, burning candle, smoking cigarettes, or an LPG
explosion. Earthquakes, lightning, floods can also cause serious damage.
Home insurance is important for every homeowner
if they want financial safety in not so pleasurable times. Well, this policy
can be taken by any person or firm that has a financial interest in the
property to be insured. For example, owners of properties, firms that
hold properties in trust or on commission, financial institutions that have a
financial interest in a property. So, if you fall in such a category you
can buy home insurance in
India. Not only a homeowner but a tenant can also buy home
insurance for their valuable contents in the rented house.
Protect your house from loss or damage: As a known fact, natural
disasters are uncertain and they can occur at anytime without informing.
Unfortunately, these natural calamities are the robust reality you can't
neglect. Humans have no power to control these natural forces, they can only
take some safety measures to reduce the risk. Home insurance policy plays a
vital role in your life that helps to curb the financial losses after the
disaster. Calamities come unknowingly and cause irreversible havoc to your home
and finances. Therefore, to protect your building and its contents, buying home insurance is
necessary.
Protect from man-made risk: Not only natural
calamities, man-made disasters also hurt the most such as riots, strikes
and malicious damage. You have to be careful about these nasty activities
and in terms of securing yourself and your house buying home insurance is
necessary. Instead of using the best safety gadgets and security appliances,
the loop can still exist that invites such incidents. Man-made calamities can
arrive anytime and here home insurance can help you to cope with the situation
and gives complete protection against theft, burglary, and others.
Give financial assurance: Buying home insurance policy gives the
ultimate sense of financial security at the time hazards that occur
unknowingly. We are always there to assist you financially because we know the
worth of it. As per the guidelines you get the compensation for the damage of
loss accordingly. This is one of the reasons why you should buy home insurance coverage.
Safeguard your valuable items: The obvious reason
to buy home insurance policy is
to ensure safety of valuable items your house contains. Apart from the building
structure home insurance policy covers the contents of the house which are
domestic/ electrical appliances, furniture and more from losses and damages.
People keep important items in their houses according to their need and status
which needs to be protected.
Helps relocation to other places: Say, if a fire breaks out
into your home in your absence as you were on vacation. After you come back you
see the destruction where you no longer can stay. In such a situation you need
to arrange some temporary accommodation elsewhere. The home insurance policy will help
you with alternate accommodation by covering the expenses.
Protects from lawsuit: If you have purchased home insurance policy you can
protect yourself and family from property-related lawsuits. This cover will
help you assist during unfortunate events i.e. accidentally damaging another
property. The unfortunate events such as fire and mechanical damage and it will
also cover the medical expenses.
Peace of mind: Everybody wants to be relaxed and stay
peacefully in their life as per today’s lifestyle, peace of mind is the need of
the hour. And, if you insure your home it will help in attaining complete peace
of mind. Once you have selected your home insurance policy,
it is shield with extra protection and financial safety.
Give complete coverage, building and content: Home insurance policy
provides complete coverage to both the building and contents of the house. If
it gets damaged because of natural or man-made forces the insurance company
reimburse accordingly. When you buy home insurance, contents like Electrical /
electronic instruments, furniture fixtures, fittings appliances, furniture,
electronics, and other personal properties are also covered.
Protect attached structures: Buying home insurance
is one of the great decisions because of the following benefits. Home is
attached with different structures such as garage, deck, porch, fence, shades
which are also being protected under the home insurance cover. These are the
benefits you will get when you buy a home insurance policy.
Protect your valuables: Valuable means gold, silver or any
precious metals or articles made from any precious metals, watches, jewelry or
precious stones or models or coins or curios, sculptures, manuscripts, stamps,
collections of stamps, rare books, medals, moulds, designs or any other
collectibles, ATM cards, credit cards, charge cards, bonds, bills of exchange,
bank, treasury or promissory notes, cheques, money, securities, or any other
negotiable instrument.
You can buy it for the long term: If you buy home insurance it
will cover both building and contents, and you can have it for one year and
then you have to renew it. Whereas in dwelling insurance only the building part is
covered which you can buy for a long period. Here you are completely free from
annual renewal.
Liability coverage: One of the benefits you get
when you buy home insurance is
that if somebody gets injured on your premises you will not be liable to
reimburse. It is designed to guard you against expensive lawsuits that could
arise in your premise.
Reduces the level of stress: We have come to that phase of
life where nobody can trust anybody, not even neighbours. People have this fear
of unknown events after leaving their houses whether it’s safe or not?
Where, buying home insurance helps
in reducing your stress level with the promise of home safety.
When you are ready to buy a home insurance policy, it is
important to go through the process of premium calculation as this can enable
you to get the most suitable cover for your house. The Home insurance premium calculator is
based on several factors such as area (sq.ft), cost of reconstruction (per sq.
ft.) and the estimated value of the properties. Home insurance covers both
buildings and contents whereas, homeowners can insure both but a tenant can
cover only the content part which is home appliances, jewelry and others. In
addition, a homeowner, as well as a tenant can opt for add-on covers.
1. Finally you are at the payment gateway where you can pay
your home insurance premium by
different payment means such as debit/ credit cards, net banking, UPI wallets
(Paytm)
Recently a powerful storm Amphan inflicted havoc in major parts
of West Bengal and Odisha. And, an earthquake triggered in Delhi-NCR and other
parts of the country. It affected the lives of the people residing in those areas
and left injured, homeless due to damage to properties. These situations have
hit hard on financial as well as the emotional front. This is the time when you
really need a home insurance
policy that provides covers for financial losses to the
house and contents. Those who have home insurance can register the home
insurance claim and settle on time.
Contact your insurer: According to your home insurance coverage the
very first thing you should do is to contact your insurance provider after the
incident takes place. Intimation is very important in the claim process for the
revelation of an incident i.e. when and how it occured. These are the basic
information they should know from your end. Therefore, whenever in such a
situation don't panic and bravely intimate your insurer about the occurrence of
calamities.
Take snap of the damaged property: The second thing is not
to forget clicking pictures of the damages due to man-made or natural forces.
That's how home insurance plan works.
Just breathe and take snaps of each and damage occurred due to the incident.
This will be counted as proof of the property destruction and helpful for the
insurer and you too in getting the genuine reimbursement. Therefore, always be
attentive in such a situation though it's not that easy.
Collect the required documents: Yes, documents are
serious and authentic written proof of every agreement done between you and the
insurer about the home insurance
service. Therefore, keep them safe because this is the time it
is required. Without documents, it would be difficult to even register a claim.
Documents such as Home insurance policy, invoices of owned belongings, rent
agreement (if a tenant), repair bills, fire brigade report (in case of fire),
your own identity proof, FIR (if any).
Coordinate with the appointed surveyor: To inspect the
situation, the insurer sends the surveyor to the location of the incident.
Where he scrutinizes the level of loss and damages to the property. It is
important to coordinate with the person who has been appointed there as a
surveyor. After assessing the damage he collects the information and submits
back to the insurer. This is how the whole situation examines and proceeds
further for the reimbursement. And, as per the covers mention in your home insurance policy you will
get reimbursement.
Reimbursement process: After the claim validates by the
insurer going through the whole process from intimating claim to the surveyor
scrutinization. They provide a claim amount to the insured. Keep these claim
steps in your mind so that you can apply it when you are in need. It is
important to stay updated with every terms and condition of the policy.
Section I – Standard Fire and Special Perils Policy
1.Fire:
Excluding destruction or damage caused to the Property insured
by
a)
1. i)
Its own fermentation, natural heating or spontaneous combustion.
2. ii)
Its undergoing any heating or drying process.
b) Burning of Property insured by order of any
Public Authority.
2. Lightning:
It is the naturally occurring electrostatic discharge which can
severely damage your house if it comes in contact.
3. Explosion/ Implosion:
Excluding loss, destruction of or damage:
a). to boilers (other than domestic boilers),
economizers or other vessels, machinery or apparatus (in which steam is
generated) or their contents resulting from their own explosion/implosion,
b). Caused by centrifugal forces.
4. Aircraft Damage:
Loss, destruction or damage caused by aircraft, other aerial or
space devices and articles dropped there from excluding loss, destruction or
damage caused by pressure waves.
5. Riot, Strike and Malicious Damage:
Loss of or visible physical damage or destruction by external
violent means directly caused to the property is covered under the policy
period. Though there are some exclusions such as permanent or temporary
dispossession of any building or plant or unit or machinery resulting from the
unlawful occupation by any person of such building or plant or unit or
machinery or prevention of access to the same.
6. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado,
Flood and Inundation :
Loss, destruction or damage directly caused by storm, cyclone,
typhoon, tempest, hurricane, tornado, flood or inundation excluding those
resulting from earthquakes, volcanic eruptions or other convulsions of nature.
7. Impact Damage:
Loss of or visible physical damage or destruction caused to the
property due to impact by any rail/ road vehicle or animal by direct contact
not belonging to or owned by
a) the Insured or any occupier of the property or
b) The insured’s employees while acting in the
course of their employment.
8. Subsidence and Landslide including Rock slide:
Loss, destruction or damage directly caused by subsidence of
part of the site on which the insured property stands or landslide/rockslide
excluding:
a) the normal cracking, settlement or bedding down
of new structures
b) the settlement or movement of made up ground
c) coastal or river erosion
d) defective design or workmanship or use of
defective materials
e) Demolition, construction, structural
alterations or repair of any property or ground works or excavations.
9. Bursting and/or Overflowing of Water Tanks, Apparatus
and Pipes:
If your house witnesses incidents like bursting and/or
overflowing of water tanks, apparatus and pipes. It would be covered under the
home insurance policy as per the terms and conditions mentioned in the policy.
10. Missile testing operations:
If you reside in such areas where missile testing operations are
being performed it can badly damage your house if any unfortunate incident
happens. Here home insurance
policy provides you cover for the respective loss and
damage.
11. Leakage from Automatic Sprinkler Installations: Excluding loss,
destruction or damage caused by a) repairs or alterations to the buildings or
premises in which the property is situated b) repairs, removal or extension of
the sprinkler installation c) Defects in construction known to the insured.
12. Bush Fire: Excluding loss, destruction or damage
caused by forest fire. You can opt this cover as an add-on in home insurance policy cover.
Section II - Burglary/House Breaking
Buying home insurance means protecting it from multiple perils
including burglary and housebreaking. Under this section, if any loss or damage
occurred due to burglary or house-breaking (theft following upon an actual
forcible and violent entry of and/or exit from the premises) or damage caused
to the premises. And, any loss or damage happens to your property due to theft,
insure is liable to indemnify the amount of loss suffered. This is how home
insurance is helpful to us. Therefore buying home insurance policy India is
the wisest decision ever.
Section III - Personal Accident
Under this section of the home insurance policy, people against
both death and disablement (permanent total/partial) from accidental bodily
injury are covered worldwide. This is another good reason to buy home insurance covers.
Section IV - Employee’s Compensation
The Employee Compensation Act, 1923 provides for the payment of
compensation by the employer to his employees (for their dependents in the
event of Fatal Accidents) if personal injury is caused to them by accidents
arising out of and in the course of their employment.
Section V – Plate Glass And Sanitary Fittings
Under the plate glass section, if there is an accidental
breakage of any of the Glass or Sanitary fittings mentioned in the policy
guidelines. In such cases, the insurer will pay the reinstatement value of a
glass plate as per the sum insured.
Section VI - All Risk
Coming to another section named all-risk policy covers laptops,
mobiles and other valuable items like jewellery, cameras and items of similar
nature are exposed to losses due to an accident.
Section VII - Breakdown of Electrical And Mechanical
Appliance
We often go through different kinds of incidents in our daily
life in our houses such as electrical and mechanical appliances breakdown.
These losses can be small or big but anyhow affects your monetary status.
Whereas, having home insurance can
help to overcome these losses under Breakdown of Electrical And Mechanical
Appliance coverage section. Therefore, in unforeseen and sudden physical
damage, the company is liable to indemnify the payment or reinstatement or
repair to the insured.
Section VIII - Electronic Equipment Insurance
All electronic equipments like computers, medical, biomedical,
microprocessors; audio/visual equipments including the value of systems
software may be covered under this section. Therefore, if still not planned
to buy home insurance. You
are missing something very important.
Section IX – Baggage
The policy covers the loss of or damage to Baggage due to
accident/ burglary/ housebreaking/ theft or personal mishap whilst on journey
anywhere in the territorial limits defined in the Schedule. The insurer will
indemnify the insured in respect of such damage up to the actual value of the
baggage at the time of happening of damage.
Section X - Public Liability
Under the public liability cover the company indemnifies insured
against their legal liabilities such as personal injuries, loss or damage to
property, and death to pay compensation including claimant's costs, fees and
expenses anywhere in India, in accordance with Indian Law.
Today's lifestyle has taken a different angle by entering the
world of digitalization. This has turned life into the most convenient and easy
pathways. There's nothing left that is not available on an online platform.
Home insurance policy is the one you should buy online without a second
thought. Home insurance online is
quite a convenient way to buy home insurance. It's like a perk for people as it
doesn't need much effort to rush to the insurance office.
Avail at the home comfort: The best part about buying home insurance is to
stay at home and easily buy the policy. Whether you have a desktop, laptop, or
mobile phone any means can be comfortable. Try to get a policy via online means
as it's there with a complete homely environment. You don't have to rush
anywhere else, just sit quietly, buy and pay.
Can explore more: When you buy home insurance online, you get
the opportunity to explore more as you have several options to choose. After
visiting the website you can read each and every instructions by yourself. Also
select as much coverage as you want to buy for your requirement.
Few & paperless documentation: While you are buying home insurance policy online it
includes less paperwork or no paperwork as everything’s done intangibly online.
The whole process of purchasing goes online due which there is less or no
paperwork needed? After you are done with policy making, you can anytime
download the policy pdf from the website. Other than that a policy copy will be
sent to your postal address with complete details.
Safe money transaction: Some people are still not
comfortable with online home
insurance policy purchasing because of the fear of fraud.
Whereas, the reality is completely different because now online transactions
are safe. Thereforefore, without any issue you can trust and process your
transaction online after purchasing home
insurance policy.
Quick services: The benefit of buying home insurance online is
that you get quick services. Like, at the time of purchasing if you find any
difficulty feel free to put up a query right there and you will get instant
assistance online and through call. Online buying is this easy, you can do
everything while sitting at home only and get what you want.
We have already come across how home insurance
is important for homeowners in India as well as their benefits and number of
coverages. And, we know home insurance policy covers both
building and contents of the house which is a complete package if anyone wants
to have it. Along with home insurance covers their are other types available in
the stream which are following -
Dwelling insurance: Before
we go to dwelling insurance it is important to know “what is dwelling’’ first.
Dwelling is the physical structure, area or part of residence you live in. That
is the building, apartment, house and attached structure to your house which
are generally garage, porch, fence and deck. Now coming to the dwelling insurance policy it
is a part of homeowner insurance policy. It helps pay for the repair of the
physical structure of your home whenever damaged by a covered hazard.
Therefore if you only want to cover
the physical structure of your house you can buy dwelling insurance which
premium option you can see below:
Methods:
Table A:
Premium shall be charged in full
without any discount. However, sum insured under the policy shall be deemed to
have increased by 10% of the original sum insured at the end of every 12 months
period.
Table B:
There shall not be any automatic
increase in sum insured as in Table A. However appropriate discounts shall be
allowable on applicable gross premium as per Table B
Content insurance: When
you buy a beautiful house, you also buy stuff that goes with the households and
for comfort. These items are quite valuable and usable such as electrical
appliances like furniture, jewellery, refrigerators, televisions, microwave
ovens, toasters and other appliances mentioned in the policy guidelines of
content insurance. Content insurance provides cover
against the loss and damage to these contents of the house.
Tenant insurance: Home
insurance is available for tenants also as they don’t
own the house but they have valuable assets inside their rented flat or house.
For the safety of those valuable contents one can buy tenant insurance cover.
Also, if you are sharing your room with your roomie then also you can insure
your part of the content. So, to have financial backup It is important for you
to buy insurance cover as a tenant against loss and damage to the valuables.
Landlord insurance: Being
a landlord it’s a big responsibility to look after the entire structure of the
house. You might not be aware about the upcoming unknown events from any
source; it can be your tenant or other residents in your building also.
Landlord insurance is there for the landlords to cover against the loss of rent
as well as public liability. Therefore for the safety’s sake of you and your
family and the house you should buy landlord insurance cover.
1) Liability
arising out of violation of any rules and regulation of the Govt. or Statutory
Authorities.
2) Loss
or damage directly or indirectly, proximately or remotely occasioned by or
which arises out of or in connection with war, invasion, act of foreign enemy,
hostilities or civil war,rebellion, revolution, insurrection, warlike operation
(whether war be declared or not), usurped power or civil commotion or loss or
pillage in connection therein or confiscation or detention by the order of any
Government or public authority.
3) loss,
damage, cost or expense of whatsoever nature directly or indirectly caused by,
resulting from or in connection with any act of terrorism regardless of any
other cause or event contributing concurrently or in any other sequence to the
loss.
4) Any
loss or damage to any property whatsoever or any loss or expense whatsoever
resulting or arising there from or any consequential loss and any legal
liability of whatsoever nature directly or indirectly, caused by or contributed
to by, or arising from ionizing radiation or contamination by radioactivity
from any source whatsoever.
5) Any
accident, loss, destruction, damage or legal liability directly or indirectly
caused by or contributed to by or arising from nuclear weapons material.
6) Liability
arising due to martial law or state of seizes or any of the event or cause
which determines the proclamation or maintenance of martial law or state of
seize.
7) Loss
or damage wear and tear, depreciation, gradual deterioration/ development of
flaws, atmospheric or climatic condition.
8) Loss
or damage caused by or arising out of willful act/gross negligence of the
insured.
9) Loss
of or damage to any Property insured under this Policy in the event of
non-cooperation, misrepresentation, mis description or non-disclosure in any
material particular or if a claim be fraudulent or any fraudulent means or
devices be used by the Insured or any one acting on his behalf to obtain any
benefit under this Policy.
Q- If
I change my address do I have to inform the insurer?
Ans- Yes,
cover for fire is location specific, hence it is mandatory to inform the
insurer.
Q- Is
my home insured if my wife uses a part of it for conducting coaching classes?
Ans- No,
homes used for business purposes are not covered.
Q- If
three people share an apartment can each one take a separate policy?
Ans- Yes,
for their part of assets