Home Insurance

In India, Home or Property Insurance is a popular banking product. Being secure is better than being sorry- the essential tenet behind the concept of insurance, applies particularly to an emotional and costly insurance such as your family home. Aside from the structure itself, a good home insurance policy provides protection to the items/ implements/ appliances and prized possessions included in the home. A trusty home insurance policy is not just the protector of your cherished home, but the precious and unique memories and emotions that reside therein.

Subscribing to a comprehensive home insurance policy allows you to enjoy the following features and benefits :

• Complete coverage against financial liabilities arising from the damage/loss of your home and/or its contents due to natural or man-made reasons.
• Thoughtful additional covers including Burglary and Theft Cover, Earthquake Cover, etc. for specialized protection.
• 100% mental peace when there is a solid security to fall back on, especially in these times of social strife and environmental upheavals.
• Applying for a home insurance policy is simple, the turnaround times are quick and almost all banks in India offer this very dynamic product.
• After the calamity that resulted in the damage/loss of your home, the on-time home insurance payouts will massively assist in helping the family put their lives back together. A big relief in such a trying time.

Tips of an Effective Home insurance Policy

• Know your Policy– Read through all the associative documents to know everything about your chosen home insurance policy. This will help you avoid surprises when raising claims.
• Compare, Compare, Compare– Different policies offer different features and benefits. Compare the various available options and choose the one that suits you the best. IndianLoanBazaar.com should help you here.
• Don’t Lose Time when Raising a Claim– Know the maximum time limit before which you must raise a claim in appropriate cases of damage/loss of property. Waiting too long could potentially deprive you of many applicable benefits. Again, complete knowledge of your policy is crucial.
• Reduce Premiums by taking Preventive Actions– Installing a competent security system, smoke detectors, investing in a good security vault or hiring a bank vault, keeping all valuables under lock and key, using extra heavy duty door locks, etc. are preventive measures that help you avoid situations wherein you need to raise claims. No claims equate to lesser premium amounts.
• Don’t Assume– Have a query with regards to your property insurance policy? Avoid assumptions and contact your insurer to clear the confusion. This could potentially save you a lot of time when raising a claim on the policy at a later date.
• Get More Protection with Add-On Covers– By subscribing to add-on covers, you are likely to account for specific conditions that aren’t accounted for, or are not comprehensively covered by the main policy. This enhanced level of protection could come in very handy when faced with a very specific type of contingency afflicting your property.
• Rethink and Restock your Policy Regularly-Getting married? Expanding your home? Buying that costly furniture? All of these events must likely prompt you to visit your insurer and amplify your home insurance policy accordingly. Things change through the course of a life- your policy must change too.

There are certain criteria that you must fulfil in order to obtain a home insurance. This varies widely from company to company. However, most companies have minimal requirements when it comes to home insurance. They are:

• Home Insurance Policy can be bought by individuals or by companies. Individuals who are Indian residents and the owner / occupant of a property can get a Home Insurance Policy. Home Insurance – multi year policy, however, can be purchased only by the owner of the house/flat.
• To buy Home insurance for a society, any authorized member of the particular society’s managing committee can make the purchase. The policy will be issued in the name of the society and will cover the society building as well as the utilities that are for common use in the society.
• It’s not just owners who can get home insurance. Many insurance companies provide cover for contents to tenants as well. Contents insurance will cover your possessions against loss or damage by lightning, fire, theft, smoke, flood etc. Everything from personal belongings, furniture and electrical items including washing machines, dryers etc. can be covered. You must read the fine print carefully before buying cover as a tenant. What is covered will vary from company to company. For example, certain insurers will not cover contents if you live in a shared accommodation. There are many such exceptions that you must look out for.

A good home insurance policy provides protection to your house against unforeseen calamities that are both, environmental and man-made in nature. The basic inclusions and exclusions are as follows-

Property Insurance Add-On Covers:
The ideal, comprehensive home insurance policy takes care of all contingencies when it comes to your cherished home. However, modern times have given rise to specific conditions that pose a particularly pressing concern when it comes to your house and the valuables based therein. Hence, add-on covers are offered by insurers to boost the protection afforded by the main insurance policy. These covers come in many types,

• Terrorism Cover – Provides financial protection to your house and the contents therein against acts of terrorism. A very vital component in these times of international strife.
• Cover for Domestic Appliances– Protects your household items including television, refrigerator, air conditioner, washing machine etc., against damage from fire, breakdown, theft, etc.
• Cover for Valuables including Jewelry– Extra protection for your precious possessions including jewelry, sensitive documents, expensive watches, etc., against natural or man-made reasons for damage and/or loss.
• Earthquake Cover-Usually an in-built clause, but also offered as an add-on cover.

Kindly note that the covers mentioned above are the more commonly subscribed options, and naturally, the most popular. For a complete list of add-on covers, consult your insurance company.

Home Insurance Coverage

A typical home insurance policy, served by an Indian insurer, will provide the insured (house and its contents) protection against the following-

• Natural Causes-Fire, Storm, Hurricane, Tornado, Flood, Earthquakes, Lightning, Inundation, Landslide, Rockslide, etc.
• Man Made Causes-Explosions, Riot, Strike, Terrorist acts, Damage by Aircraft, Implosion, Malicious damage, Missile tests leading to damage, Leakages, etc.

The premium amount applicable to the subscriber is decided by two factors- 1) Location of the insured property, and 2) Applicable tenure of insurance. Ideally, home insurance can stretch from a minimum of 3 years to a maximum of 30 years. Again, these conditions are specific to the home insurance company in question.

Given the times we live in, one cannot be entirely safe at home or even outside. The same risk extends to our prized belongings too, like our house or vehicles. So, while vehicles are protected by a , our house also requires similar protection, which can be provided by a home insurance policy. One of the most crucial elements of a home insurance policy is the claim settlement process. A smooth claim settlement process can easily make or break a home insurance policy. The process of claim settlement is very crucial to a home insurance policy and it is important for every home insurance policy owner to familiarize themselves with the basics of the process. So, here are a few handy pointers to remember when you have to make an insurance claim.

• First and foremost, evaluate the damage that the house has sustained. Even if there has not been any major damage, it is important to get an estimate.
• If the house has been burgled or there has been a theft, the immediate step must be to contact the place to file an FIR, and also contact your insurance provider.
• One of the more important things to do, in a situation where the house has sustained damage is to record the same via photographs. Take photos of the house or your could record the same on video by walking through every part of the house. Also, do not toss away the items inside the house which may have been damaged. All his is necessary in order for you to substantiate your claim.
• When assessing the damage caused, you must take all the costs into consideration like the cost of labor, materials and even the items inside the house which have been lost or damaged. Also, add any cost that you might incur on alternate living arrangements while your house is under repair.
• It is important that you contact your insurance provider before taking any action.
• Find out the time limit that your home insurance policy carries regarding the filing of claims. Usually, companies have a time limit within which you must file for a claim.
• You must ensure that no further damage is caused to the house. Also, make sure you save all receipts on whatever expenses you do incur and submit the same to the insurance provider.
• Once you have notified the insurance company about the damage, you will be required to fill up the claim form. Ensure that you do not miss out any details and also provide correct information. Also, given that insurance policies are often time bound when it comes to filing of claims, try sending the filled out form at the earliest so the claim process can be initiated.

Following this, once the company has received your Claim Form, the insurance company will send a Surveyor or Adjustor to inspect the damage that the house has undergone. Though the insurance company is very unlikely to disapprove of your claim, the surveyor’s report of the damage definitely holds ample weightage in the decision.

Once the insurance company has accepted the claim, the next step of the process is settlement of payments incurred towards the repairs to the house and restoration of the contents of the house which have been damaged or lost. For any specific questions regarding the claim settlement process, you can also contact your home insurance provider to provide you with the necessary details. After all, your house is also one of your most prized investments which must be provided with adequate protection, just like your loved ones.

The claim settlement process for House Insurance involves the following steps :

• Policyholders must immediately inform the company about the claim by calling on their 24/7 helpline number (toll free).
• Following the intimation to the insurance company, the policyholder must provide them with all necessary or relevant information not only pertaining to their policy but also details regarding the damage that has been caused. Once the claim request is consequently, your claim request is verified and validated, the claim settlement request is forwarded to the insurance company’s Claims Department.
• Once the company has validated and registered the claim request, the insurance company will appoint and send across a surveyor within the next 48 hours.
• Following the Surveyor’s report, you must submit all the necessary documents to the Surveyor. Once the Surveyor has inspected the damage caused, they will prepare and submit a Final Survey Report (FSR) and the required documents to the company within 7 days.

Q1. Is home insurance absolutely necessary?

Q2. Must I get a terrorism cover? I live in a safe part of India.

Q3. What documents must be submitted when filing a claim?

Q4.What are the type of properties that aren’t usually covered by home insurance policies?

Q5. What is the eligibility criteria to apply for a home insurance policy?

Q6. While buying a Home Insurance policy, is it compulsory to get coverage for building?

Q7. If my household goods are damaged during transit, will my home insurance policy cover it?

Q8. What does ‘debris removal’ mean?

Q10. Is it possible for me to take home insurance policy from two different insurance companies?

Q11. If I have a property financed towards housing loan from the bank, is it possible for me to get Home Insurance policy for the same property?

Q12. What is Public liability policy?

Q13.What is No claims discount?

Q14. What is loss of rent cover?

Q15. What is Temporary resettlement cover?