Home Insurance
Summary
Discover what your home insurance covers, including protection against fire, theft, and natural disasters. Read on to know if co-owners can claim benefits and ensure everyone is financially secure in case of an unfortunate incident to the house and its contents.
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Home insurance offers protection for your residence in case of unexpected events. It doesn't just protect the actual building or structure of the house but ensures the safety of the belongings within. This type of insurance holds great importance for homeowners in India, acting as a reliable safeguard for their most prized possession.
In this comprehensive guide, we will discuss the following key aspects of home insurance in India.
What is Home Insurance?
Home insurance will help you in case of any losses by way of compensation. It covers damages to the building structure of your home as well as the household goods found in the building.
Based on what is covered, there are two main types of home insurance plans in India:
1. Home Building Insurance: This refers to the structure of the house, which is the physical part of the building.
2. Home Contents Insurance: As the name suggests, this covers the contents of the household and not the structure.
It is also possible to purchase just the latter, especially for tenants or a home contents insurance policy that protects both the structure of the house as well as its contents.
Home Insurance in India: What is covered?
The aspects covered under a standard home insurance policy in India are:
Apart from the above, there is also coverage for electrical breakdown, accidental damage, and alternate accommodation. Property insurance also offer a third-party legal liability coverage. If a third party obtains an injury in your home and decides to sue you, this insurance coverage can save you.
Add-on Covers in Home Insurance
You can enhance your coverage by opting for add-ons like:
Who needs Home Insurance?
Home insurance can be opted for by landlords, tenants, and homeowners. If you are a tenant, it is highly advisable for you to seek protection for your household items in case of loss or damage under a home contents insurance policy.
Are co-owners entitled to a claim under the home insurance policy?
The claim settlement is then made to all intended co owners in proportion to their respective share. For instance - if A and B jointly own a home, A having 60% share and B having 40%, any claim payment is made to them in the same 60:40 ratio It is clear that the combined ratio is at its lowest level since the establishment of the company and that it has outperformed competitors in key areas of underwriting.
In India, buying a home insurance policy is an easy and simple process, which is explained below:
When buying property insurance, you have to have complete knowledge and information concerning your home, like its location, size, structure, and products like washing machines, refrigerators, television sets, etc. This way, they ensure that your insurance policy adequately protects you. Most of the time, the insurers will ask for serial numbers for all the electronic gadgets in the house to ensure they are covered, and they only settle claims for the same.
Complete and correct information should always be provided to the insurance company. Any misrepresentation creates issues at the time of a claim and can lead to rejection.
Exclusions applicable to most home insurance policies
Though home insurance is like a safety umbrella, protecting you from unexpected problems and giving you peace of mind, it is important to remember there are some exceptions, called exclusions. These exclusions tell you what isn't covered by your policy so you can make sure you're properly protected.
Some of the common exclusions in home insurance policies include;
1. Old content: Any content in the house older than 10 years is not covered in the policy.
2. Cost of land: The cost of land is not covered in the policy in most circumstances.
3. Consequential loss: If there is a loss that is not the result of the main cause, it will not be covered in the policy and will not be paid by the insurance company.
4. Wear and Tear: Home insurance is designed to protect your home from unexpected events, not from everyday wear and tear. This means damage from ageing or lack of maintenance is usually not covered.
5. Nuclear Accidents: Any damage caused by nuclear explosions or radiation is usually excluded from home insurance policies.
6. War and Terrorism: If your home is damaged due to war, terrorism, riots, or government actions, your insurance likely won't cover it.
7. Intentional Damage: If you or anyone living in your home intentionally damages your property, your insurance won't pay for it.
8. Business Activities: If you run a business out of your home, any damage caused by your business activities may not be covered by your home insurance.
Understanding these exclusions is crucial for making informed decisions about your home insurance coverage. If you have any concerns or questions, talk to your insurance company to ensure you have the right protection for your needs.
Conclusion
In summary, home insurance covers your property and possessions from various unforeseen events like fire, theft, or natural calamities. In most scenarios, coverage includes protection of the home, personal property, liability, and other living expenses. Also, most often, whether married or not, co-owners have some rights to the coverage in a policy, but what they have is subject to the specifics of the policy and the ownership structure by which the title is held. Be informed as to what is covered by home insurance details for complete protection of your property.
