Home insurance policy offers comprehensive coverage to both, the structure and contents of your home, against a wide range of risks such as fire, lightning, earthquake, theft, riot and other hazards.
Homeowner insurance policy will pay for the expenses of replacing your personal belonging which got damaged in an unfortunate event with the brand new items of the same quality.
Home insurance comes at comparatively low premium rates. Also if proper safety equipment like burglary alarm are installed at home, then insurers also offer attractive rebates on your premium.
Householders insurance policy claims are usually promptly settled, allowing families to start the reconstruction process quickly and helping them to reduce stress and move back to their normal lives.
Home Insurance or house insurance is a type of property insurance that provides cover to the private residences against losses. It covers a range of situations where loss or damage to the property is caused due to incidents beyond the control of the occupants of the house.
In the past few years, natural calamities like floods, earthquakes and cyclone, have come unannounced and resulted in irreparable damage to homes of millions of India. Just one such incident can cause havoc to your house and its valuable contents. Even if you live in a region which is not prone to any natural disaster, your abode may still be exposed to risks like; faulty wiring, accidental fire, burglary, riots, and other unexpected threats. Therefore, buying a home insurance policy is existential to your overall well-being in the face risks.
Home insurance acts as a safety net, covering your home and its precious belongings. It provides financial support to you and your family when you need it the most. Purchasing the right home insurance plan ensures you stay tension free from any unforeseen damage. Buying home insurance can help the insured go through the rebuilding process quickly as well.
Home insurance also known as property insurance or homeowner insurance covers the structure as well as the content of the home from unexpected loss damage caused due to both natural and man-made causes. The losses can be the result of theft, burglary, fire accident, earthquake, flood etc. A house insurance policy provides coverage for your own house, rented house, apartment or even luxury mansion you may own.
Home insurance policies are usually valid for a fixed period, for which the insured pays a premium to the insurance company. The premium insured has to be pay is decided on the basis of potential risks associated with the home and the necessary precautions adopted for protection of the home.
A comprehensive home insurance policy is an amalgamation more than one policy and protects the structure, contents and losses due to other accidents at home. Homes are usually susceptible to fire, natural disasters, terrorist attacks, burglary, etc.
Home insurance covers you against a lot of natural disasters like; monsoons and floods, fires, earthquakes, and other weather-related damages. It also covers you against and made incidents like; riots, arson, strike, terrorist act, war etc. Whatever size, location, and other security features your property may have, there still looms the danger of fires, floods, or burglaries.
Building Structure Only - When you opt in for a building-only home insurance, you get covered for losses to the building only, i.e. underlying foundation, walls and roof. If the construction is damaged due to any natural/man-made perils listed under the policy, you can file a claim.
Home Contents Only - When you opt in for a contents-only home insurance policy, you get cover only for losses to your belongings like furniture and appliances etc. inside the building. You can also cover your valuable jewellery under the valuable contents clause.
Building Structure and Home contents - When you opt for this type house insurance you secure your house structure and possessions under the same policy. Policy will provide you comprehensive protection, which includes;
Bharat Griha Raksha policy provides coverage for home building and its content. Effective April 1, 2021, IRDAI mandates all insurers to offer this policy.
Under Bharat Griha Raksha Policy, Insurer agree compensate you for the loss you suffer when unexpected events cause physical loss, damage or destruction to the structure of your home, and articles inside it. What is insured under the policy?
Actual damage: The common damages that are covered under the Bharat Griha Raksha include;
|Fire||Explosion or Implosion|
|Flood and Inundation||Landslide|
|Forest Fire||Jungle fire|
Besides above calamities, damage caused by impact of or collision caused by an external physical object such as a vehicle, falling trees, aircraft, walls structure etc. are also covered. Policy also covers any physical damage or destruction caused to the insured property by theft within 7 days from the occurrence of and caused by any of the insured events.
Associated costs: Besides actual damages, the policy covers many associated costs;
Man-made disasters: Some man-made disasters like; strikes, riots, malicious damages, acts of terrorism and missile testing operations, are also covered under this policy.
Default coverage of home contents, unless opted out- Any damage to the house mostly results in damage to the contents inside the property as well. BGR offers an automatic coverage for the contents. This is 20% of the sum insured of the home building with Rs.10 lakh capping. If a policyholder does not want this feature, he can opt out.
Optional cover - In addition to the basic coverage and in-built covers, Bharat Griha Raksha offers two optional covers, namely;
Policy does not cover losses and expenses for any loss or damage or destruction of the insured property that is deliberate, willful or intentional act or omission, or by anyone on your behalf, or with your connivance.
Sum insured of the building can be calculated using the below formula:
Sum Insured: Build up area * cost of construction per square feet
For example, if the area of build is 2000 Sq. Ft. and the cost of construction Rs.1500 per Sq. Ft. then the building cost will be ₨. 3000000.
Sum Insured of Content:
Content value is considered as the actual invoice/cash value or from the replacement cost, i.e. Marker value - Depreciation cost.
Home insurance policies are available both for long-term as well as short-term, Short term policy is of one year tenure and a policy more than 1 year is categorised as long-term home insurance policies. Generally following policy tenure options are available under the home insurance:
|Building Structure Only||1 to 30 years|
|Home Contents Only||1 to 5 years|
|Building Structure and Home Contents||1 to 10 years|
First and foremost, the proposer of the policy should have an interest in the assets being proposed for insurance, that is, he/she should stand to lose financially in the event of loss or damage to such assets. Secondly, the proposer should submit a proposal form disclosing all details, which are true to the insured's best knowledge and other information, which the proposer may feel is relevant.
Both homeowners and tenant are eligible to take the home insurance policy. However, the coverage offered by each of this plan differ slightly for homeowners and tenants. For ex.; the owner can take the policy for home structure or only the contents of the home or both as per the coverage, whereas the tenant gets both the liability coverage and content coverage.
Though not mandatory, It is essential to purchase home insurance to safeguard your investment. A home insurance plan is a must-have under several situations for a homeowner. One such situation is when the owner of the house has mortgage, then the company who is funding this mortgage will ensure that whether your house is insured or not before lending any money.
It is important to buy a home insurance plan that provides protection against possible natural disasters in your location. If you live in an area that is earthquake prone, you have to ensure that earthquake cover is explicitly listed in the policy coverage. Similarly, coastal homes have greater exposures to typhoon, tsunamis, cyclones etc. which is why they often require additional coverage beyond what comes with a standard home insurance policy.
Home insurance offers coverage not just against natural disasters but covers man-made incidents beyond the control of insured. For example, theft, burglary, loss and damage to valuable possessions, and other adverse events such as fire due to a short circuit or an explosion due to a gas leak.
A best home insurance plan is the one that provides peace of mind to homeowners on a day-to-day basis, allowing them to enjoy living in their property without worry of an unexpected financial burden. Some house insurance companies offering insurance plans in India to Homeowners/Tenants are:
IFFCO Tokio Home Insurance
Bajaj Allianz Home Insurance
Bharti AXA Home Insurance
Cholamandalam Home Insurance
Future Generali Home Insurance
Coverage and Benefits- Most of home insurance plans cover; the Fire & allied perils, Loss of documents , Home burglary, In-transit loss or damage to household goods - Personal accident cover - Loss of rent - Coverage for pedigree pets - Alternate accommodation expenses - Loss of baggage - Third party and employee liabilities, etc.
Optional Covers- Terrorism cover, Earthquake, Escalation Clause, Loss of Rent, Pet cover, Accidental Medical benefit, Documents and Cards, Debris removal, and many more.
Plan that provided broad coverage, for both natural and man-made incidents, is always the one preferred by buyers. Home insurance should provide cover to house structure and its content. An ideal home insurance should also cover policyholder’s legal accountability, accidental damages at an affordable premium.
There are number of home insurance providers in India who offer different plans suiting an individuals’ needs. To help select and finalise, prospective buyers should check how home insurance provider fare on below parameters:
Check Premium and Coverage – Accessing risks which your home is facing or might face in the future should be your first step towards buying a home insurance policy. For instance, if you residing in a low lying area flood-prone then you should ensure that your property insurance policy is covering these risks as well. While checking coverage, it is advisable to check if the premium payable fits within your budget or not.
Check Claim Settlement Ratio - A good insurer is accessed by the turnaround time of settling claims. It defeats the very purpose of insurance, if you do not get a claim when it is required. Therefore, it is worthwhile to check the claim settlement record of property insurance providers before zeroing in on any house insurance providers.
Access Company’s Reputation - The first and foremost characteristics of a good company are that it has customer-friendly staff. Your preferred house insurance provider must have competent customer service representatives capable enough to resolve your queries quickly and toy your satisfaction. It is always important to choose an insurance provider who is well equipped to assist you at any point in time.
Home insurance covers the following contents:
|Interior & Plumbing||Clothing|
Even though best home insurance plans provide extensive coverage, there are some exclusions as well. Some of the common exclusions are:
Documents required for filing a house insurance claim are:- Insurance Companies Claim Form duly completed and signed. Sequential evidence of event occurring, nature and magnitude of loss such as; First Information Report, Fire Brigade Report, Estimate of the repairers, Rent Agreement etc.
A duly filled-in claim form, building plan, fire department report , FIR in case of theft or loss, bills/receipts, KYC documents, and a cancelled cheque for receiving claim amount electronically are a few of the documents you might need depending on the type of claim.
Home insurance can offer the following advantages and benefits:
Extensive protection- With home insurance, you not only ensure coverage to the structure of your home but also its extensions like garage, shed, and compound too. You can also opt-in for policies add–ons like content insurance, insuring your household items like; furniture, electronics, and home appliances as well.
Coverage against natural disasters - One of the main advantages of house insurance is that you enjoy coverage against losses caused due to such unforeseeable events. These events can be a natural calamity like an earthquake or flood, or man-made event like riots, arson, strike, terrorist attack etc.
Coverage against theft - Theft is another major concern that keeps homeowners worried all the time. Fortunately, home insurance also covers you against losses due to theft or burglary, some plans even covers the property of your domestic helps.
Cost–efficient protection - Investing in a home insurance policy can pay off when you need it the most. The competitive rates of home insurance now a days, make them worth buying, especially when you look at the coverage it provides in return.
Liability coverage - Your home Insurance policy also covers you against any claims that may arise due to damage to third–party property or out of accidental death of third- party.
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3 main reasons why you need a home Insurance today:
Protects a lot more than your home - A Home Insurance policy not only protects the house from physical damage, it also provides coverage for items inside the house. A comprehensive Home Insurance policy further covers the loss due to theft and burglary. It is a fact that most Indian household tends to keep a number of valuables on hand, it makes practical sense to invest in a policy that will cover these items.
Provide timely compensation for your losses - It provides a compensation to recover your losses. This is especially important in case of damage due to uncertain natural calamities like earthquakes, floods, storms, cyclones, etc. Given the increase in natural disasters all over the country in recent years, investing in a House Insurance makes complete sense. Affordable premium- A home insurance policy is one of the most affordable insurance policies. A typical Home Insurance policy covering losses up to Rs. 40 lakhs can be bought for Rs. 2000 to Rs. 5000, depending on the items covered.
There are several companies offering Home Insurance policies in India. Depending on the coverage offered, it is possible to choose the best Home Insurance policy for your home. Looking to apply for a Home Insurance? Read more on the application process!
There are several benefits and features of a home insurance policy:
Home insurance, also called property insurance or homeowners insurance, protects the structure and content of your residence against adverse events like theft and fire, natural calamities (storms, cyclones, etc.) or man-made activities (riots and terrorism). Unfortunate incidents like theft, burglary, fire breakdown, floods, etc., come without any warning and lead to irreversible damages, thereby impacting years of income in a fraction of a second. A home insurance policy will protect your hard-earned money against such losses, in turn providing you and loved ones at home, with the peace of mind
Constant flood and fire incidences are common concerns in a country like India. It is therefore important for all homeowner and tenant to opt for the best home insurance policy to secure their residence from financial losses. One can also opt for useful add-on covers like loss of rent, portable equipment coverage, etc.
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