Home insurance is a type of general insurance that helps individuals safeguard their properties from any natural calamities or man-made perils. With this policy, homeowners can get financial coverage for any damage or lost content of the house.
One should choose the home insurance policy that offers a suitable value for the home as well as its contents at affordable premiums. Here is a detailed idea about what is home insurance and the coverage that you can get from it.
What is covered under homeowner’s insurance?
A home insurance policy is an essential financial protection that is meant for every proprietor.
You can get the following coverage under a home insurance policy:
- Portable equipment cover
With a home insurance plan, individuals can get coverage for any loss or damage to any portable equipment anywhere within India. However, with an additional premium, one can avail of global coverage.
Contents cover
A homeowner’s insurance policy will offer coverage for any loss or accidental damage to the contents of the home such as kitchen items, electrical appliances, fixtures, furniture, lights, clothes, different personal belongings and many more.
Arts, paintings and curios covers
You can also get coverage for any damage that takes place to work of art, paintings or curios of your house. However, at first, the valuation of these items will be carried out by a government-approved valuer, and then the insurer will compensate the same amount to you.
Jewellery cover
Any damage or loss caused accidentally to jewellery or any other such valuable items anywhere within India is also covered under homeowner’s insurance. However, for an additional premium, one can get global coverage.
Building cover
If any physical damage happens to the building due to any reason, one can get a coverage of Rs. 20,000 for buying emergency supplies such as food items, medicines, clothes and others.
Burglary cover
A home insurance policy will also offer financial protection in the event of any loss due to theft or burglary.
Worldwide cover
With a home insurance policy, one can get coverage for various items across India as well as globally. To get worldwide coverage, one has to pay a slightly higher premium. This will enable them to get global coverage on jewellery, portable equipment and various other valuables of the house.
Additional cover
Apart from the above-mentioned items, individuals can also get extended coverage via certain add-ons such as:
1. Lost wallet cover: Coverage in case the wallet is stolen or lost
2. Dog insurance cover: Coverage in case the pet dog dies or gets infected with a disease during the policy period
3. Employee’s compensation cover: Coverage for any unfortunate incident that takes place during one’s employment period
4. Temporary resettlement cover: Coverage for costs incurred for transportation, moving and packing to an alternate accommodation
5. Lock and key replacement cover: Coverage for costs incurred due to loss or theft of any keys of the house or vehicle.
5. Public liability cover: Coverage if someone gets injured at the insured property
New for old
The new-for-old cover in the home insurance policy means that the insurer will either pay for a damaged or lost item in cash or provide a brand-new item. For instance, you can get a new laptop with similar specifications from the insurer or get cash for buying the same version.
What are the exclusions of home insurance policy?
Here are some of theexclusions under homeowner’s policy that one should be aware of before buying this plan:
- Any damage that is pre-existing in nature, applicable to the building as well as contents in it.
- Any manufacturing defect in electrical or mechanical items of the house for which the manufacturer is responsible.
- Loss or damage to contents of home due to theft or burglary in which any family or house member is implicated.
- Any damage or loss in firearms caused due torusting, bursting or other similar reasons.
- Costs that are incurred for regular maintenance of home and kitchen appliances or other electrical items.
- Loss or damage to the fridge or other cold storage appliances due to a change in temperature.
- Loss to furniture or fixtures due to rodents, termites, moulds, etc.
- Destruction of property under any court order.
The inclusions and exclusions of homeowner’s policy may differ between multiple insurers and an individual should look into the policy brochure carefully for more information about what’s not covered.
Benefits of a home insurance policy
Some of the major advantages of buying a home insurance policy are as follows:
- Individuals get financial protection for losses and damages to their homes due to any natural calamity such as flood, earthquake, etc. There is also financial protection for losses due to man-made disasters like vandalism, strikes, riots and others.
- It will be easier to get a loan for repair, renovation or extension of a property if the home is insured
- One also gets compensation for damage to valuable contents of the house such as electrical appliances, jewellery, valuable paintings, furniture, etc.
- If any damage takes place to third-party property or life due to any incident in the insured house, the owner gets compensation and can steer clear of any financial liability
Keep in mind that the home insurance policy’s cost always depends on various factors and they should be checked before signing the papers.
