Home Insurance

Householders or homeowners insurance, commonly known as home insurance, is the type of property insurance that covers private homes and various contents in it against a variety of risks. This insurance policy combines various insurance protections such as losses arising due to damage to one’s home and/ or its contents, loss of personal belongings or possessions of the homeowner and liability arising out of accidents that may happen at home. The policy document clearly lists down what will and what will not be paid in case of any unforeseen event.

The cost of home insurance usually depends on the cost one would incur to replace the house or its contents as covered under the policy and additional insured riders.

The coverage amount under the home insurance policy for the structure of the house is based on the reinstatement value. Very simply put, it would be the reconstruction cost of the house in the event of any loss and/ or damage arising due to any of the insured events like Fire, Storm, Riots, Flood, etc.

The policy is usually divided into various sections

• Fire and Allied Perils like lightning, Acts of God, riot and strike, etc
• Burglary and housebreaking including larceny and theft
• All risks
• Plate Glass
• Breakdown of domestic appliances or any accidental loss to them
• T.V. Sets, VCR, Audio system, Music Players, DVD players
• Pedal Cycles
• Baggage - either due to accident/ damage or while travelling
• Accidental injury which causes death or total/ partial disablement
• Public/ Third Party Liability

Broadly, the home insurance policy covers the building structure and contents, loss due to burglary/ theft, loss of jewellery or valuables, baggage loss, damage or loss of domestic and electrical appliances, damage to electronic equipments and other belongings like Pedal cycles, etc.

The policy generally covers the structure of your home and contents against

• Fire, Lightning, Explosion/ Implosion
• Riot Strike, Malicious and Terrorist Damages
• Earthquake, Volcanic Eruption & other Convulsions of Nature
• Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation
• Bush fire
• Aircraft damage and Missile testing operations
• Impact damage by rail/ road vehicle and animal
• Subsidence and Landslide including Rockslide
• Bursting and overflowing of water tanks, apparatus, pipes
• Leakage from automatic sprinklers installations

The usual exclusions are willful destruction of property, any loss or damage to any property that is illegally acquired, kept, stored which is subject to forfeiture, any loss or damage by the insured and/ or insured’s domestic staff direct or indirect involvement in an attempted burglary, any loss caused by war, wear & tear, and/ or If the property was vacant for more than 30 days without prior notice to the company.

Any loss or damage suffered due to the following is treated as an exception and cannot be claimed:

1. Any loss or damage on account of loss of livestock, motor vehicles, pedal cycles, money, securities for money, stamp, bullion, deeds, bonds, bills of exchange, promissory notes, stock or share certificates, business books, manuscripts, documents of any kinds, unless specifically mentioned and valued.
2. Consumable articles.
3. Loose precious stones, jewellery or valuables, unless specifically mentioned and valued.

Therefore, yearly valuation plays a vital role in home insurance to ensure that claim becomes an easier process!