Home Insurance: The Missing Piece in your Dream
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Having a house of your own is a dream of everyone. Living in our home is a matter of pride and social respect, for many. A home is also the most important asset, a legacy that we create in our lives. Furthermore, property costs in cities of India, especially in metros, are among the most expensive in the world. Most of us not just spend our life's earnings in building our homes, but also spend a fortune on renovations and interiors. Our homes today are filled with all sorts of valuables (including gold /Jewellery) and high-end fittings, electronics, furnishings, and so on. Needless to say, we have heavily invested in our homes, which is not limited to just emotions.
For any asset of such high importance and value in our lives, its protection and security must be always on the top of our minds. Unfortunately, we see a lack of awareness, negligence and the abysmal penetration of home insurance in India. This is a big contradiction. We all are very well aware of the risks to our property and our belongings. India ranks as one of the top five countries to suffer the most natural disasters in the past decade. We have vast areas/regions which are prone to natural calamities like floods, earthquakes, tsunami, etc.
Further, there is always the risk of fire, theft, burglary, riots, accidents, etc., irrespective of where you live. In light of the endless risks, it should also be easy to comprehend the need and the importance of home insurance by everyone.
What is Householders Policy?
In simple words, the Householders Policy, also known as a Home Insurance Policy, is an agreement between a residential property owner and the insurer for protection to your house and its contents from any loss or damage that may occur due to an unforeseen situation. There are a plethora of home insurance providers offering different plans and covers, you have the flexibility of choosing a cover that suits your requirements the best.
The householder policy is a comprehensive bundled policy specially designed for contingencies encountered by homeowners comprising different sections. It can be issued to homeowners, tenants of flats, housing societies, apartments, bungalows, row houses in rural/semi-urban and urban (including Metro) cities.
Fire and Allied Perils
This is perhaps the most important optional coverage available under the Householders Policy. It can be further broken down into two parts…
Home Building Cover: The definition of the home building normally covers the home building, fixtures, fittings, renovation, etc. and all permanent structures/components, fittings forming a part of the same. However, it does not include the contents of the home. Further, the building should be used primarily for residential purposes and not for any commercial purpose /holiday home, etc.
The cover is available for physical loss or damage, or destruction caused to the home building by the following unforeseen events occurring during the policy period.
Home Contents Cover: Home contents mean and include furniture, fixture, fittings, linen, clothing, kitchen items, cutlery/crockery contained in the Insured's home for domestic use and all such items. This optional cover indemnifies the Insured in respect of loss or damage to home contents due to
The insured has the option of choosing either reinstatement value or market value as the basis of valuation at the time of buying the policy.
Other optional covers and sections: Apart from the above important cover /section, there are multiple options /sections available which can be chosen as per our requirement.
Burglary And House Breaking, Including Larceny Or Theft: Covers loss or damage to contents, by burglary /dacoity /robbery and house-breaking including larceny and theft, excluding money & valuables). Also covers damage to the Insured's house and/or safe resulting from burglary and/or housebreaking or any attempt thereat
All Risk for Jewellery / Valuables: Covers loss or damage to Jewellery, Mobile phones, valuables caused by accident or misfortune anywhere in India.
Domestic Mechanical & Electrical Appliances: This section indemnifies loss or damage to domestic electrical /mechanical appliances /gadgets caused by and/or solely due to mechanical and/or electrical breakdown.
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Domestic Electronic Appliances: This section covers loss or damage to personal computers (incl. accessories and printer), other domestic electronic appliances and/or any electronic installation while contained or fixed in the Insured's house
Television Sets: Cover for loss/damage to TV Set and allied components in insured premises by Fire and allied perils, burglary, theft, accidental means, riot, natural calamities, etc.
Pedal cycles: Covers loss/damage to pedal cycle belonging to insured by Fire and allied perils, burglary, theft, accidental means, riot, natural calamities, etc.
Plate glass: This section covers loss or damage to fixed plate glass, frames in insured premises by accidental breakage
Baggage: The company will indemnify the insured and/or family members permanently residing with the insured for personal baggage accompanying and belonging to the person and for which he/she is responsible whilst travelling anywhere in India against lost, destroyed or damaged by accident or misfortune
Personal Accident: If the insured or such members of his/her family permanently residing with him/her all between the certain age range named in the schedule shall sustain bodily injury solely and directly caused by accidental violent external and visible means resulting in death or disablement
Legal Liability: The Company will indemnify the Insured in respect of sums which the Insured shall become legally liable to pay (a) domestic servants in case of injury /death and other legal costs (b) third parties due to accidental death of or bodily injury to third parties and/or accidental damage to property caused by or through the fault or negligence
Buying Home Insurance:
The primary function of any home insurance policy is to offer risk coverage /protection of the structure, personal belongings, third-party liability and also coverage of living costs till the time the home is being repaired. The good thing is that the home policy coverage is highly customizable and flexible.
Coverage can be opted for under multiple sections, as discussed above, of which at least 3 must be chosen by the policyholder. Some policies may even offer cover for pets and fine art. Available for both owners and tenants, one can tailor-make their policy as per their needs. The policy costs /premiums are also very affordable and low and will surely not prove to be a burden on your pockets.
Apart from the obvious advantages and?benefits, one of the biggest reasons to buy is to get your peace of mind. So, if you are planning to build or buy your own house or even if you are staying in a rented one, make sure to get home insurance cover to live a tension-free life in your abode.
Why wait? Get in touch with your insurance advisor today.