Magazine Insurance PlanningInsurance Planning

SECURE ABODE WITH HOME INSURANCE

Still doubtful about getting a household insurance? Consider the cost of replacing your home — and everything in it, and you will realise the importance of a home insurance policy.

The secure domestic world of Sukanya Sharma was invaded when a freak accident sparked a minor fire in her apartment in New Delhi. The fire was put out quickly, but the ceiling and walls of the entire apartment were darkened by soot. Some woodwork and furniture were also damaged. The total loss, including the cost of repainting the apartment, was estimated at Rs 20,000. Given the specifics of Sharma’s policy — she was covered for damage to the building from “fire and allied perils” — she got a compensation of Rs 14,000. And this cover came at a premium of less than Rs 700 a year in her case.
Sharma’s experience reinforces the merit of buying householders’ insurance, but this is one risk that many people, who may otherwise be adequately insured, haven’t recognised. .
Four public sector players (New India Assurance, United India Insurance, Oriental Insurance and National Insurance) and few private players (IFFCO Tokio General Insurance, Royal Sundaram Alliance, Tata-AIG and Bajaj Allianz, etc.) offer house insurance policy.

Who can apply for this policy?
This Policy is suitable for all, as a householder whether you are a landlord or a tenant. Policies can be issued for a maximum period of one year.
You can choose between a comprehensive cover or a separate cover. If you opt for a comprehensive household insurance policy. If you opt for a separate policy, then you can pick and choose the sections on which you want coverage. But you have to take a minimum of two: the burglary and the fire coverage.

What it covers?
Broadly, the policy insures you against loss of or damage to your house and its contents, including jewellery and other valuables and domestic appliances, and even loss of baggage during travel. The coverage provided under various sections is given below which are subject to the standard exclusion as may be applicable.
Fire & Allied perils: Covers loss or damage to building and contents due to fire, impact damage, explosion/implosion etc.
Burglary & Theft: Covers loss or damage of household property and contents due to burglary or theft during the normal course of occupancy and even if the house has been unoccupied.
Audio and Audio visual Appliances: A comprehensive coverage for your appliances like television covering loss or damage caused by fire, burglary and theft, mechanical and electrical break-down as well as legal liability up to specified amount.
Breakdown of Domestic Appliances: Covers appliances like refrigerator against the risk of unforeseen and sudden mechanical breakdown.
Purchase Protection: Provides automatic protection for newly purchased articles against fire and burglary.
Baggage: Your accompanied baggage is protected while you travel.
Transit of Household goods: In case you need to relocate to a different city or a different household in the same city, home insurance policy will hold your possessions protected against loss or damage during transit in case of an accident to the carrying vehicle.
Personal Accident: Home insurance provides Personal Accident cover to entire family on account of death, permanent total or partial disablement and Medical expenses and Ambulance charges up to specified limits related to and arising out of accident.
Pedal Cycle: Covers your pedal cycle comprehensively against accidental damages. Additionally it also covers liability towards third party injury and/or property damage up to Rs 10,000 only.
Jewellery and Valuables: Covers loss, destruction, and damage to jewellery and valuables anywhere in India due to Accident and/or misfortune.

What’s in, what’s out?
While taking the policy one must bear in mind the following circumstances in which the Insurance Company shall not pay the claims.
• Damage as a consequence of war, invasion, revolution etc.
• Depreciation and damage caused by wear and tear or gradual deterioration.
• While declaring the value of the contents one should ensure that that there is no under insurance. In case, the actual value of the insured property at the time of loss is found to be greater than the sum insured opted by you then the claim would stand to be reduced in the same proportion.
• There are some clauses under the policy, which are subject to excess, in such a case the insured has to bear the specified proportion of excess i.e., part of the claim which the insurer shall not bear.