Home insurance protects your home building and home contents such as interiors, furniture, appliances, electronics & jewellery against fire, natural calamities, theft, burglary and 30 other risks. A home insurance policy provides peace of mind safeguarding you from any unforeseen financial costs

Home insurance covers the building structure of your home (including plinth and foundation) against unexpected loss or physical damage. Home insurance provides coverage for your own home, rented home, multi-storey apartment or private bungalow

You can also cover the contents of your home such as furniture, interiors, fixtures & fittings, household appliances, electronic gadgets, jewellery and valuables against unexpected loss or physical damage

Fire and Special Perils: Covers loss or physical damage due to fire, explosion or implosion, lightning,      earthquake, volcanic eruption or other like convulsions of nature, storm, cyclone, typhoon, tempest, hurricane, tornado, tsunami, flood, inundation and 14 other risks.

Rent for Alternative Accomodation: Covers rent for a defined period of time in case the insured property is not fit to live. Some plans will cover the reasonable increase in living expenses within  the same city in the event of the property getting damaged/destroyed on account of an accident during the policy period

Theft & Burglary: Covers loss or physical damage to your home contents due to theft and burglary

Jewellery & Valuables: Jewellery, precious stones, curios, antiques, Fine Arts, “Pair & Set” and items of similar nature is covered under this section. This section covers all risks of direct physical loss or damage to Valuable articles anywhere in India and worldwide (on a temporary basis)

Domestic Electrical & Electronic Appliances: This section includes items like AC, TV, Fridge, Oven, Music System and items of similar nature. This section covers loss or damage to the domestic electrical and electronic items from unforeseen and sudden mechanical and/or electronic breakdown

Portable Electronics: Covers loss or damage to portable electronic items like mobile phones, laptops, tablets, cameras, iPads etc. from unforeseen and sudden electrical breakdown

Baggage: Covers theft and accidental loss or damage to the personal baggage accompanying and belonging to you and/or your family on a trip undertaken outside the municipal limits of the insured city or while temporarily carrying anywhere in the world. Some plans also indemnify the expense incurred for contingency purpose occasioned by the loss

Public Liability: Covers damage on account of legal obligation and defence cost for personal injury or property damage caused to guests or a third party. This section offers coverage to the insured and his/her family members. Some plans may cover on a worldwide basis

Personal Accident: Covers death or disability of the insured or his/her family members or his/her domestic staff due to injury caused by an accident during the policy

Pet Cover: Covers your pet dog or pet cat against any unforeseeable event. This section indemnifies the veterinary expenses on account of road accident, poisoning, dacoity, robbery, terrorism, death of the pet and theft of the pet from home premises

A home insurance policy can be taken for 1 year, 3 years, 5 years or 10 years

A rough illustration – For a Home Building Sum Insured of Rs. 2Cr and Home Contents Sum Insured of Rs. 20 Lacs against Fire & Special Perils and Theft & Burglary, annual premium would be approximately Rs. 6,500/- – Rs. 7,000/-

Actual costs may vary depending on coverages, product and insurer

You can insure your home building on Reinstatement Cost Basis or Agreed Value Basis. Under reinstatement cost basis, your building sum insured is equal to Carpet Area multiplied by Present Day Cost of Reconstruction based on your local area/municipality. In case of a claim, the insurer will pay you the cost of reconstructing/repairing your home building to a state similar to the condition before the accident

Under Agreed Value Basis, you can insure your home building on market value. A valuation report by a government approved valuer would be required in case of a claim. In case of a claim, the insurer will pay you the Sum Insured only if you choose not to or are unable to reconstruct/repair your home building

Your Home Building is a building consisting of a residential unit, having an enclosed structure and a roof, basement (if any) and used as a dwelling place

Your Home Building includes 

(i) fixtures and fittings permanently attached to the floor, walls or roof, like fixed sanitary fittings, electrical wiring and other permanent fittings 

(ii) the following ‘additional structures’ if they are on the same site and used as part of your Home Building:

Garage, domestic outhouses used for residence, parking spaces or areas, if any

Compound walls, fences, gates, retaining walls and internal roads

Verandah or porch and the like

Septic tanks, bio-gas plants, fixed water storage units or tanks

Solar panels, wind turbines and air conditioning systems, central heating systems and the like, if not included in Home Contents cover

(iii)  Any other structure shown in the Policy Schedule

Your Home Building does not include Contents of Your Home

A standard home insurance policy or Bharat Griha Raksha (BGR) offers the following optional covers:

(i) Cover for Valuable Contents on Agreed Value Basis (under Home Contents Cover):

 For Valuable Contents, a value may be agreed upon by You and Insurer based on a valuation certificate submitted by You and accepted by Insurer. However, the insurer may waive the requirement of a valuation certificate if the Sum Insured opted for is up to Rs. 5 Lacs and individual item value does not exceed Rs. 1 Lac. If the Valuable Contents of your Home are physically damaged by any Insured Event, insurer will pay the cost of repairing the items. If the Valuable Contents of your Home are a Total Loss, insurer will pay the Sum Insured shown in the Policy Schedule for the Valuable items. 

(ii) Personal Accident Cover

In the event an insured peril that caused damages to your Home Building and/or Home Contents also results in the unfortunate death of either You or Your Spouse, the insurer will pay a compensation of Rs. 5 lacs per person

In the event of the unfortunate death of the Insured, the Personal Accident cover shall continue for the Spouse until expiry of the Policy

The insurer does not cover losses and expenses for any loss or damage or destruction of the Insured Property that is directly or indirectly as a result of or is caused by or arising from events, stated below:

A) Your deliberate, wilful or intentional act or omission, or of anyone on your behalf or with your connivance

B) War, invasion, act of foreign enemy hostilities or war-like operations (whether war is declared or not), civil war, mutiny, civil commotion amounting to a popular rising, military rising, rebellion, revolution, insurrection or military or usurped power

C) Ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste from combustion of nuclear fuel or the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component that is part of it

D) Pollution or contamination, unless (i) the pollution or contamination has itself resulted from an Insured Event or (ii) an Insured Event itself results from pollution or contamination

E) Loss, damage or destruction to any electrical/electronic machine, apparatus, fixture, or fitting by over-running, excessive pressure, short circuiting, arcing, self-heating or leakage from electricity from whatever cause (Lightning included). This exclusion applies only to the particular machine so lost, damaged or destroyed

F) Loss or damage to bullion or unset precious stones, manuscripts, plans, drawings, securities, obligations or documents of any kind, coins or paper money, cheques, vehicles, and explosive substances unless otherwise expressly stated in the Policy

G) Loss of any Insured Property which is missing or has been mislaid, or its disappearance cannot be linked to any single identifiable event

H) Loss or damage to any Insured Property removed from your Home to any other place

I) Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind or description whatsoever

J) Any reduction in market value of any Insured Property after its repair or reinstatement

K) Any addition, extension, or alteration to any structure of your Home Building that increases its Carpet Area by more than 10% of the Carpet Area existing at the Commencement Date of or on the date of renewal of this Policy, unless you have paid additional Premium and such addition, extension or alteration is added by Endorsement

L) Costs, fees or expenses for preparing any claim

Immediately notify the insurer about the claim. Once the First Information Report (FIR) is filed, and the insurance provider is informed, the policyholder should furnish all pertinent and relevant information concerning the purchased policy and the incurred damage. Upon receiving the claim request, the insurer starts the process of validation and verification. Following this, the claim settlement request is forwarded to the claims department of the specific insurance company. Within the next 48 hours or so, a surveyor is dispatched to assess the damage or loss and subsequently prepares a report. All additional necessary documents are to be submitted to the surveyor. The surveyor then prepares the Final Survey report, which, along with the required documents, is submitted to the insurance provider within 7 days.

If your financial institution has internal guidelines that require mandatory home insurance to avail home loan benefits, it is not compulsory to purchase insurance coverage from them. However, if your bank insists on buying home insurance exclusively from them, consider the following steps:

Compare Policies: Compare home insurance quotes offered by financial institutions with those from other insurers.

Evaluate Premiums: If the difference is minimal, it may be convenient to opt for the financial institution’s offerings in this case.

Refuse if Overpriced: If the lender’s home insurance premium is significantly higher than other insurers in the market, it is wise to decline their proposal. Additionally, consider other factors such as customer assistance facility, additional services, claim settlement process, etc.

Raise a Complaint: If the financial institution remains uncooperative, file a complaint with the manager

Consider Another One: If all else fails, explore other financial institutions that will cooperate with you for your home loan needs.

Here are some crucial tips to consider when finding the right home insurance plan:

Compare Home Insurance Plans: Begin the home insurance buying process by visiting InsureMyHome.co.in

Compare home insurance quotes from reputable insurance companies in India based on your requirements.

Know Your Coverage Needs: Examine what aspects of your property you want to cover, such as the structure and its contents. For instance, if you are a tenant, buy only content cover and skip building structure coverage.

Know the Financial Strength of the Insurer: Check the financial stability of the shortlisted insurers and their claim settlement ratio to get a fair idea of how the company operates.

Check Customer Reviews: Read customer reviews on the insurer’s website and related social media platforms for better insights into their service quality and customer experiences. Choose an insurer and a policy that aligns with your requirements and budget.

Choose the Right Sum Insured: Calculate the appropriate sum insured based on your property’s size and the value of your belongings. Additionally, take advantage of add-ons for extended coverage at the most nominal premium.

Home insurance policies come in two types, differentiated by their tenure. Let’s delve into an explanation of each

Simple or Short term policies:

These policies provide coverage for the home and its associated contents for a tenure ranging from one to three years. They offer comprehensive protection for your house structure, safeguarding against risks such as theft, damage, loss of personal belongings, accidental loss, and fire outbreaks. Despite having a shorter tenure, these policies are relatively more affordable compared to long-term options.

Long term policies:

True to their name, these policies are crafted for extended coverage, spanning up to 30 years. They provide comprehensive protection against all major risks. Additionally, you have the option to enhance coverage by purchasing add-on covers for an extra premium. Given the longer tenure, the associated risks increase, making these policies relatively more expensive than their simpler counterparts.

Here are some benefits of renewing your home insurance policy on time:

• Cost Savings: Renewing your house insurance on time can result in significant savings. If you let it expire, purchasing a new policy can be a more expensive undertaking

• Enhanced Property Value for Buyers: While home insurance plans aren’t transferable, renewing your policy reflects responsibility to potential buyers. They perceive you as a conscientious seller, contributing to the assurance that the home is well-protected

• Updated Property and Contents Valuation: Timely renewal keeps you informed about your home and its contents’ current value. The renewal process often involves a revision of valuation metrics, assisting you in understanding the current market value, which can be beneficial when planning to sell your house.

• Long-term Security for Future Generations: Your home is a lifetime investment. Timely renewal ensures that your property is well-maintained and protected from various risks, providing long-term security for future generations. Owning a secure house becomes a valuable asset for your descendants.

Renewing your home insurance policy on time not only brings financial benefits but also establishes a sense of responsibility and foresight, securing both your present and your legacy.