1) What is home insurance?– A good home insurance doesn't just protect the structure of the building against man-made and natural disasters, it also provides financial protection to the furniture, appliances and even prized possessions like jewellery and art work in the home. A very important point to note is that the policy won't cover the market value of your property; it only insures the cost of the building structure.
2) Eligibility- Indian residents who own or occupy a property can get a Home InsurancePolicy. Even a housing society can buy a policy in its name that will cover the society building as well as common utilities. Many insurance companies provide cover for tenants as well. In this case, they can only insure the contents like furniture, electrical appliances, etc that they have bought.
3) Add-on covers- A typical Home Insurance policy covers damage to building structure and contents due to natural and man-made structures like fire, theft, burglary, riot, strike, floods, lightning, etc but faced with the present realities, insurance providers have also started provided add-on covers like
– Terrorism cover which provides financial protection to your house and the contents against acts of terrorism.
– Cover for Domestic Appliances and
– Cover for Valuables including Jewelry
These covers come at a little extra cost
4) Exclusions- Remember, a home insurance cover will not protect you against
– Loss or damage caused by wear & tear and depreciation
– Loss of cash
– Loss or damage caused by war, invasion, act of foreign country
– Loss or damage caused by nuclear war or
– Loss, destruction or damage caused to any electronic equipment due to over-running or excessive pressure
5) Cost and service providers- Average premium to cover the structure and contents for a 0-10 year old property will cost you anywhere between 2 to 6 thousand rupees depending on the add-on covers you opt for
Some of the PSUs offering home insurance include
New India Assurance
SBI Home Insurance
Oriental Home Insurance
In private sector, some of the popular insurance providers are
Bajaj Allianz Home Insurance
Bharti AXA Home Insurance
HDFC Ergo Home Insurance
ICICI Home Insurance
TATA AIG Home Insurance