Home Insurance

The claim settlement process of home insurance is simple and hassle-free. In the event of a claim, you need to intimate the insurance company and register the claim. Then you need to submit a claim form with basic details like nature of loss, location of loss, the approximate amount of loss and policy number. Once all the documentation is received, your claim will be analysed and processed within a specified time.

Documents play an important role while filing the home insurance claim. Apart from duly filled claim form, some of the important documents which need to be submitted to the insurance company are - FIR copy, fire brigade report, a brief summary of the incident, KYC form, repair estimates and original invoice for replacement. This list might vary according to the nature of the event and the clauses as per your policy.

In loss settlement on reinstatement basis, when the property is damaged due to fire or other covered incident, the personal property insurance will reimburse that loss by paying for the reconstruction of damaged property or by replacing the item with the new one. This reinstatement value includes the cost of foundation and excludes the cost of land.

If your house is damaged, you should never undergo reconstruction or repair work without intimating the home insurance company, as it may cause claim denial. Instead, you should inform the insurance company about the damage and register your claim. Their surveyor will visit your house to access the extent of damage and accordingly will ask you to repair the damages. Once the work is completed, the surveyor will revisit, then you can submit all the documents and bills to him so as to process the claim further.

Generally, the home insurance premium will be calculated based on the built-up area of the house (square feet), cost of construction in your locality and the cost of contents or valuables at market price. Policy tenure also plays an important role while calculating the cost. The premium may also vary depending upon the coverage included in the policy.

While home insurance premium is usually economical, its cost will vary depending upon the type of coverage you have opted. For example, structure cover of Rs 30 lakhs and content cover of Rs 1 lakh covering fire, burglary and terrorism will not cost you more than Rs.2000 per annum. The premium will be much lower if you just want to cover the structure of the home.

In order to reduce your home insurance premium, you can increase the deductible amount. It is the amount that you have to pay towards your loss and hence premium amount will be lower if you opt for a higher deductible. Also, you should consider installing safety equipment like a fire alarm, sprinkler system, burglary alarm and dead-bolt locks. This will also help you in getting discounted premium rates for home insurance.

Home insurance generally covers the structure of the house for its reconstruction value, which is the cost incurred to reconstruct the damaged part of the home. While selecting the sum insured you should consider the built-up area of the house using the construction rate per square feet in your locality. For example, if the built-up area of your house is 1500 sq.ft. and the construction cost is Rs 2000 per sq. ft. then you should buy insurance with sum insured of Rs.30,00,000

Home is the place where thousands of memories with your family and friends last for a lifetime. Hence protecting this home against accidental damage is of utmost importance. Homeowner insurance protects your house by covering its structure and content against all kinds of damages due to natural calamities and fire perils.

Any Indian resident who is an owner or occupant of the property can buy a householder insurance policy to cover their house or flat. In the case of a residential society, an authorised member of the society's managing committee can buy house insurance in the name of the society to cover buildings and utilities of the society.

If you live on rent, the landlord is responsible for the maintenance of the building. Hence its up to them to cover the house structure under home insurance. But you would be responsible for those contents which belong to you while you are living in the rented house. If any accidental damage happens to them then you will have to bear all the cost of replacement. Hence it is recommended to buy home insurance with content cover if you live on rent.

The agreed value in homeowner insurance means any loss or damage to the property due to the covered risks will be settled by the insurer on the value of the property and its contents agreed by the insurer at the time of buying the policy till value is generally fixed for the whole policy tenure.