Home insurance is a form of insurance just like a car insurance that protects your car and its content, a home insurance offers protection to the structure and contents of the house in the event of any physical damage incurred to the house by any unavoidable perils .Though Home insurance is not mandatory to buy in India however it is quite necessary for the financial safety.
What is Home Insurance?
Home insurance is a form of insurance that offers protection to the structure and contents of the house in the event of any physical damage incurred to the house by any unavoidable perils .Though Home insurance is not mandatory to buy in India however it is quite necessary for the financial safety.
For 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 and insurer will be indemnify the losses as per the insurer's guidelines.
Who can take this policy?
Home insurance is important for every homeowner well, this policy can be taken by any person or firm that has a financial interest in the property to be insured. One can purchase the Home Building Cover if they own or are a tenant of the Home Building and they are liable for insurance. One can also purchase Home Contents cover for articles or things in their home.
You can purchase this cover for home building only if
- You own the structure,
- You are occupying Your home as purchaser under an agreement of sale,
- You are an authorized occupier of Your home,
- Your structure is occupied by a tenant, a licensee or Your employee, or
- You are a tenant under an agreement in writing and are liable for insurance.
Residential use: You can purchase this insurance cover if Your Home Building is used for residence. If you carry on commercial activity by employing other persons, you must purchase another insurance cover meant for commercial premises.
You can purchase this cover for home contents only if
- You are the owner of the articles or things,
- You have purchased the articles or things under installment or hire purchase system, or on lease, or
- You are responsible for the articles or things as part of written contract of employment. Thus, a tenant, lessee, licensee or employee can purchase the Home Contents Cover.
Why home insurance?
Coverage Against Natural/Man-Made Disaster: As a known fact, natural disasters are uncertain and they can occur at any time without informing. Often, it causes extensive damage to life and property. Humans have no power to control these natural forces; they can only take some safety measures to reduce the risk. House Insurance policy plays a vital role that helps to curb the financial losses which will be incurred for re-building or re-setup of home after the destruction or damages due natural calamities like floods, cyclones and earthquakes.
Coverage against the Man-made Risk: Not only natural calamities, man-made risk also hurt the most such as Riots, Strikes &Malicious damage, Theft and Burglary You have to be careful about these nasty activities and in terms of securing yourself and your house. Home insurance policy will be support financially in case if any misfortune happen due these Man-Made risk.. Instead of using the best safety gadgets and security appliances, the loop can still exist that invites such incidents. Therefore buying home insurance policy can help you to cope with the situation.
Give financial assurance: Buying Home Insurance policy gives the ultimate sense of financial security against any misfortune and unforeseen event caused by that occur unknowingly. Most of us, don’t realize the importance of taking up a home insurance policy until it’s too late. You financially and indemnify your losses caused by insured events to property. As per the destruction of insured property either home structure or home contents or both accordingly. This is one of the reasons why you should buy Home insurance policy.
Helps relocation to other places: Say, if a fire breaks out in your home destruction is massive where you no longer can stay. In such a situation you need to arrange some temporary accommodation elsewhere. The Home insurance will help you with alternate accommodation by covering the expenses.
Protects from lawsuit: If you buy home insurance, you can protect yourself and family against lawsuits from third party. 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. This cover is offered under Public liability section.
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.
What are the benefits of Home insurance?
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 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.
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 neighbors. 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.
How to file a claim for Home Insurance?
Recently a powerful storm 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 Home insurance policy that provides covers for financial losses to the house and contents.
Let's see how to file a claim for home insurance -
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 occurred. 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 loss 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: For hassle Free claim settlements proper documents such as policy copy, 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) are required. Make sure to submit claim form at the earliest opportunity but within 30 days from date you first notice the loss or damage.
Coordinate with the appointed surveyor: Insurer will appoint a surveyor to access loss. He scrutinizes the level of loss and damages to the property. It is important to coordinate with after assessing the damage; he will submit loss report to insurer. This is how the whole situation examines and proceeds further for the loss settlement.
Claim Settlement process: After the claim validates by the insurer going through the whole process from intimating claim to the surveyor report submission.
Insurer will settle claim as per the loss quantum knowing this claim process will help him/her when in need. It is important to stay updated with every terms and condition of the policy.
Add-on you can choose with home insurance
- Architects, Surveyors and Consulting Engineers Fees ( in excess of 3% of the claim amount) : Fees for making structure or equipment repair.
- Removal of Debris (in excess of 1% of the claim amount): Insurer incurred expenses for removal of debris
- Forest Fire: damage to the house caused by wildfire
- Impact Damage due to Insureds own Rail/Road Vehicles, Fork lifts, Cranes, Stackers and the like and articles dropped there from.
- Omission to insure addictions, alteration or extensions: Any additional purchase of assets during policy year.
- Loss of rent clause: loss of rent due to damage of the building
- Additional expenses of rent for an alternative accommodation: Additional expenses paid by the insured for occupying an alternate accommodation.
- Terrorism: damage to the building due to terrorist activities.
How is the home insurance premium calculated?
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.
- The process for calculating home insurance premium online is quite easy. You have to visit our home insurance page via desktop, laptop or smartphone. Click to buy now and then you will get a page with several blanks that required your basic details which are Proposer's Full Name, Email Address, Mobile, Built up area (Sq.ft), Construction cost(₹/Sq.ft), Sum Insured, Period of Insurance(Year), Aadhaar Number.
- Proceed Next and a page with some more additional details will appear which are Built up area (Sq.ft), Construction cost (Rs/Sq.ft), Sum Insured, Period of Insurance(Years), Is Hypothecated to Bank / Financial Institution? Building address with, City, Area, Other Area and Pincode and some additional details about the proposer Proposer's Full Name, Email Address, Mobile, Phone Number, Occupation, Address, City, Area, Other Area, Pincode.
- Proceed Next, and your home insurance quote will be generated, a page with complete details about you and your property appeared properly bifurcated and calculated premium. You can still review the complete process and recorrect if anything’s wrongly mentioned.
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)
How to file a claim for home insurance?
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.
Let's see how to file a claim for home insurance policy -
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.
Home insurance following sections of coverage-
The House Holder policy is a comprehensive package policy specially designed for contingencies encountered by House holders comprising of following sections
|Column A||Column B|
|We cover physical loss or damage, or destruction caused to the Insured Property by||We do not cover any loss or damage, or destruction caused to the Insured Property|
|1||Fire||caused by burning of Insured Property by order of any Public Authority|
|2||Explosion or Implosion|
|4||Earthquake, volcanic eruption, or other convulsions of nature|
|5||Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Tsunami, Flood and Inundation|
|6||Subsidence of the land on which Your Home Building stands, Landslide, Rockslide||
a. 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, or
e. demolition, construction, structural alterations or repair of any property, or groundworks or excavations.
|7||Bush fire, Forest Fire, Jungle Fire|
|8||Impact damage of any kind, i.e., damage caused by impact of, or collision caused by any external physical object (e.g. vehicle, falling trees, aircraft, wall etc.)||Caused by pressure waves caused by aircraft or other aerial or space devices travelling at sonic or supersonic speeds.|
|9||Missile testing operations|
|10||Riot, Strikes, Malicious Damages||
a. temporary or permanent dispossession, confiscation, commandeering, requisition or destruction by order of the government or any lawful authority, or
b. temporary or permanent dispossession of Your Home by unlawful occupation by any person.
|11||Acts of terrorism (Coverage as per Terrorism Clause attached)||Exclusions and Excess as per Terrorism Clause attached|
|12||Bursting or overflowing of water tanks, apparatus and pipes,|
|13||Leakage from automatic sprinkler installations||
a. repairs or alterations in Your Home or the building in which Your Home is located,
b. repairs, removal or extension of any sprinkler installation, or
c. defects in the construction known to You.
|14||Theft within 7 days from the occurrence of and proximately caused by any of the above Insured Events.||
if it is
1. any article or thing outside Your Home, or
2. any article or thing attached from the outside of the outer walls or the roof of Your Home, unless securely mounted
Optional Covers under home insurance Policy -
1) Cover for Valuable Contents on Agreed Value Basis (under Home Contents Cover): Valuable contents such as jewellery, silverware, paintings, works of art etc. can be covered under this optional cover. In any case, the insurer will comply requirement of valuation statement if the sum insured chosen is up to ₹ 5 Lakh, and the individual item doesn't exceed ₹ 1 Lakh. If valuable contents are physically damaged by any insured event, the cost of repairing will be paid for the item. If the valuable contents are a total loss the sum insured will be paid for the item.
ii) Personal Accident Cover: If the insured peril causing damage to home building or contents also results in the death of either insured or spouse, the compensation of ₹ 5 Lakh per person will be paid.
Section II - Burglary/House Breaking
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.
Section III - 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 IV – 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 V - 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 VI - 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 VII - 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.
Section VIII – 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 IX - 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
Why to buy Home insurance online?
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.
Following are some of the key points of buying Home Insurance online -
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.
You can explore more: When you buy 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 instruction by yourself. Also select as much coverage as you want to buy for your requirement.
Few & paperless documentation: While you are buying 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 policy purchasing because of the fear of fraud. Whereas, the reality is completely different because now online transactions are safe
Types of Home Insurance
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:
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.
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.
General exclusions in Home Insurance-
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.
10) Pollution or contamination, unless
i) The pollution or contamination itself has resulted from an Insured Event, or
ii) An Insured Event itself results from pollution or contamination.
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- 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