Home Insurance

Choosing A Home Insurance Policy: Overview

There’s no such place as home to enjoy the company of your near and dear ones. Your home is a place which is full of memories that you have built upon gradually over the course of time. Generally, our life’s savings are put into buying or constructing our home hence apart from emotional, tremendous financial value is attached to it. But imagine something bad happening to your home due to some unforeseen circumstances like a natural calamity, accident, burglary among others.

It is here that you come to realise the importance of having a home and property insurance plan that can safeguard your home from any such threat and provide financial support in case of an unavoidable circumstance.

What Does Home Insurance Policy Include?

  • Plan offers you comprehensive coverage against the most commonly occurring threats to a household or property
  • Provides coverage for a period of 5 to 10 years
  • Frees your mind from any tension related to the safety and security of your home as home insurance is there to take care of any mishap

What Are The Types Of Home Insurance Plans?

A home insurance is pretty straightforward and it generally covers almost everything related to your home and/or property. However there are three basic types of policies:
  • Fire & Allied Perils Policy which covers most of the perils the property is exposed to like fire, riots, flood, and storm.
  • Burglary & House Breaking Insurance Policy that covers loss of current assets due to burglary and theft.
  • All Risks Policies that cover your valuables.

Tips For Choosing A Suitable Home Insurance Plan

Before you decide to buy a home insurance policy, take a look at the following points which will help you in choosing the best policy for your home:
  • Policy coverage and premium: Check what all is covered by a policy. Nowadays, different companies offer add-on coverage benefits like terrorism cover etc. Availing the additional benefits comes at an extra cost hence always ensure that the policy premium is well within your budget
  • Company reputation: Check the past record of the company before finalizing your buying decision.
  • Claim settlement time: This is perhaps the most important aspect of finalizing the company that you are buying the insurance from. If the settlement is not done on time then the purpose of choosing a home insurance plan is defeated.

What All Are Included?

Depending on the insurer company chosen, the home insurance in India normally covers
  • Coverage against fire and allied perils for fixtures, building, fitting and renovation as well.
  • Cover against fire, allied perils and burglary for home contents, appliances, valuables and jewellery. Even newly purchased stuff has up to 10% of the sum insured.
  • It also covers loss against damage of household stuff under transit in India.

What Are The Exclusions?

Typically your home insurance policy does not cover the following:
  • Loss and damage to the property of policyholder caused by war or any such activities like terrorism or criminal activity.
  • Self-willed acts or carelessness of the policyholder
  • Radioactivity and events happening before and after the policy time-period.
  • Normal wear & tear of the house