Dec 03, 2018 0

Everything You Want To Know About Home Insurance Policies

A home insurance is essential to protect your new or existing property. It covers your house and its possessions against any kind of damage or theft. Under the policy, the insurer pays a certain assured sum of money in case of such unwanted incidents.

Investing in these types of insurance policies in India is a must. Different insurance policies come with different features and benefits. You should check all the insurance related details carefully prior to availing one. Let’s take a look at all the details you should know about a home insurance policy.

1. What Does Home Insurance Cover?

Typically, a home insurance covers your residence against fire and special perils. These insurance policies also apply for a residential apartment. You can additionally insure it against storms, fire, flood, lightning, or any man made malicious damage and vandalism with certain insurers who include coverage for such damages as a part of the policy terms.

You can also insure all the movable assets against burglary. The policy will cover personal belongings, consumer durables, and other household items against theft. However, the total sum assured for such events has to be specified in the policy.

2. Is There Any Age Limit On The Property That Is To Be Insured?

You can avail these types of insurance policies for properties of any age. Any Indian citizen who is an owner or occupant of a property can avail this type of insurance.

3. How is The Total Insurable Sum Calculated?

The total sum insured for your home is calculated by multiplying the built-up area of your house with the cost of construction per square feet, i.e. the reconstruction value.

However, if the insurance cover additionally includes the assets in your home, the sum is calculated on a market-value basis. The rate is determined according to the market price of each amenity or asset, and depreciation is applied to calculate the total.

4. Can a Rented House Be Insured?

If you live in a rented house, you can avail a home insurance to insure its fixtures and furniture, your household appliances and personal valuables like jewellery, consumer durables, etc. The policy will provide cover in case of a fire, other natural disasters, and theft or burglary if mentioned.

However, if you own a property and use it for business purposes, you will not be able to insure it under these types of insurance in India.

5. What Happens to the Policy If The House Is Sold?

If you sell the house, you will have to inform your insurance company and cancel the existing policy under your name. As you do not own the property, you don’t require an insurance cover on it. Therefore you don’t have to pay the premium. The new owner is under no obligations to continue that policy.

6. Does Home Insurance Cover Damages Caused By The Negligence of Tenants?

Home insurance covers damages caused to the house and its furniture due to tenant negligence. However, similar to other types of insurance policies in India, it does not reimburse any harm caused willingly to the property.

Policies might differ between companies. Some providers offer pre-specified agreements which will protect you against liabilities arising from damages to property and assets. Contrarily, some insurers do not cover damages caused by tenant negligence.

7. Will the insurance cover any damage if the house was unoccupied at the time of an incident?

Cost of damages will not be payable by the insurer if you have a householder’s policy and your home was left unoccupied for seven days or more. However, the definition of non-occupancy may vary between insurers. Make sure to check the fine lines in advance before opting for the insurance.

Those are the essential factors that you should remember about these types of insurance policies in India. Also, here are a few pointers you should remember before opting for an insurance policy.

· Look at reimbursement policies, claim settlement rates and turn around times while you select an insurer for the insurance. Also, go through the complete paperwork of the policy and understand every detail.

· Make an accurate inventory of every item in your house at the time of purchasing the insurance. You can refer to this list while filing a claim in case of an incident.

· Periodically update your policy value to cover the rate of inflation.

Insurance is imperative to ensure the safety of your property while covering unforeseen circumstances. It covers against the difficult and tedious process of rebuilding your property, saving you both the hassle and expensive repairs.