In India, the smart homes revolution is reshaping the way we live. Many millennial and Gen Z homebuyers prefer smart homes equipped with sophisticated security systems, automated lighting, AI systems, smart appliances, and more. With the adoption of cutting-edge technologies in every space of life, smart homes seem to be an efficient and convenient choice for tech-savvy people. As it becomes more prevalent in India, it is important to understand the impact of this on home insurance. Homeowners need to consider various factors before buying home insurance policy for their smart homes.
Smart Home Insurance Policy in India
Smart home insurance refers to a combination of home insurance coverage and coverage for smart home devices. It provides coverage for the physical structure of the home against various perils, such as fire, theft, natural calamities, etc. It also includes coverage for home content based on advanced technologies, such as smart appliances, automated security systems, smart thermostats, IoT devices installed at home, etc., against perils like fire, theft, flood, cyber security threats, etc.
Things to Consider While Buying Home Insurance Policy for Smart Homes
Buying home insurance for a smart home requires unique considerations as the risks associated are quite different from the traditional homes. Here are some important things to consider before you buy insurance:
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Choose the right insurance company
Not every insurance company in India provides comprehensive coverage for smart homes. Hence, it is important to first explore the insurance companies that provide all-risk coverage for smart homes in India. Once you know the insurance companies, you can compare the coverage and cost of smart home insurance offered by them. You can go on the Secure Now platform as it allows you to compare home insurance policies from various insurance providers and compare them based on benefits and quotes. This can help you make an informed decision.
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Coverage for smart home content
In India, standard home insurance policies typically cover the loss or damage to the physical structure and home contents, such as valuables in the home, in unforeseen events. However, when you are buying home insurance for a smart home, it is important to verify with the insurance company that the coverage is extended for advanced technological content in the home, such as smart devices, smart locks and other automated security devices. As these tech-based smart contents are highly expensive, it is crucial to have a cover for them in case of loss/damage in an event like fire or theft. Few insurance companies offer smart home all-risk policies in India.
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Cybersecurity cover in home insurance policy
Smart homes are digital and connected to the internet, which makes them vulnerable to cyber-attacks. Currently, standard home insurance policies in India do not provide coverage for cybersecurity. Despite strong security measures, homeowners need to include cybersecurity cover for their smart homes.
It is wise to choose customisable home insurance policies for your smart home, as you can tailor the coverage to your requirements. Comprehensive coverage ensures complete financial security in an unfortunate event.
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Discounts on cost
Integration of cutting-edge technologies in various smart devices like smart locks, smoke detectors, automated security, smart irrigation controllers, etc., reduces various risks such as water damage, fire and theft. Hence, you can look for insurance companies that can offer discounts on the premium for smart homes equipped with advanced technologies, recognising the reduced risk.
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Exclusions
While buying home insurance, it is crucial to consider the general exclusions in the home insurance policy. Home insurance policies usually do not cover loss or damage due to war, radioactive substances, explosives, breach of law, pre-existing damages, defects, intentional losses, or wilful destruction. Read through the policy’s terms and conditions to know if there are any specific exclusions.
Conclusion
In conclusion, as the demand for smart homes grows in India, it becomes crucial to secure them with the right type of coverage. Though smart homes enhance efficiency and safety, they are exposed to other unique risks such as cyber threats. Hence, it is prudent to have comprehensive coverage that gives coverage for physical structure as well as expensive smart home content against all possible risks.
Frequently Asked Questions (FAQs)
Is home insurance policy premium for smart homes expensive?
Though smart home insurance is an evolving new type of insurance in India, it is quite affordable. Many insurance companies recognise the reduced risk due to the high-safety features of smart homes and offer discounts too. However, the cost can depend on various parameters such as level of coverage, add-ons taken, and more.
What is the claim process for a smart home insurance policy?
The claim process is quite simple and the same as that of standard home insurance. Here are the steps to follow for the claim process:
- Inform the insurance company immediately of the occurrence of the event
- Submit the necessary documents along with the claim form to the insurance company
- Surveyor appointed by the insurance company does the inspection of the site of destruction or loss
- The insurer verifies the documents and inspection report to approve the claim
- Upon approval, compensation is paid.
