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