Home Insurance



About Home Insurance:

The home insurance is a banking product that offers protection to the appliances, gadgets, furniture and all prized possessions of a house. This insurance policy covers different personal protections that include losses to a person’s home, contents as well as personal belongings. It even covers the liability insurance for the accidents that occur at home or by the homeowner within the terms and conditions of the policy. This insurance policy offers financial protection from natural calamities or disasters. This multiple-line policy includes liability coverage and property insurance with the indivisible premium, which means you have to pay a single premium for all the types of risks.

The homeowner's insurance cost depends on the price it would take for replacing the house along with the additional endorsements included in the policy. It is a legal contract between the insured person and the insurance carrier or company.

The Importance of Home Insurance:

Your home is undeniably the most expensive asset and with a home insurance, you can handle the financial loss due to natural or man-made disasters such as flood, fire, earthquake etc. easily.

  • Compulsory for Home Loans: In India, it is mandatory to take a home insurance policy or else no home loan is sanctioned by the bank.
  • Insurance of the Contents of the House: Apart from the structure of a house, you can purchase the insurance of the contents of the house that is the items which are fixed or stored within the house. With this kind of insurance, you can safeguard your home from accidental breakage, theft and the damage caused by electrical or mechanical breakdown. It is essential to have your house fully insured as you are investing your lifetime’s saving in it.
  • Safety from Natural Calamities: With a home insurance you can be assured that your house would be financially protected from the damage caused to your property from natural calamities such as cyclones, earthquake, floods etc. It is important on your part to do thorough market research before choosing the right home insurance policy for your home.

Best Home Insurance Policies in India by Top Insurance Company

  • Bajaj Allianz Home Insurance
  • BHARTI AXA Home Insurance
  • HDFC ERGO Home Insurance
  • ICICI Lombard Home Insurance
  • SBI Home Insurance
  • TATA AIG Home Insurance
  • Chola Ms. Home Insurance
  • Future Generalli Home Insurance
  • IFFCO Tokiyo Home Insurance
  • Oriental Home Insurance
  • Reliance Home Insurance
  • Royal Sundaram Home Insurance

Types of Home Insurance Policies/Plans

The eminent home insurance companies in India offers varied types of insurance policies according to the individual needs of customers. Some of the most popular home insurance plans or policies are enlisted here.

Standard Fire and Special Perils Policy: This insurance policy offers coverage against fire break-out and other dangers. Homeowners, as well as tenants, can buy this policy. This home insurance policy covers the ‘insured home’ against the damages due to

  • Natural calamities such as fire, lightning, volcanic eruptions, forest fire, bush fire, earthquakes, floods, and storms.
  • Damage to the house due to implosion or explosion, anti-social man-made activities such as riots and strikes.
  • Damage of a residential property by direct impact with a vehicle.
  • Damage to the house due to overflowing of water pipes, tanks etc.
  • Damage incurred due to testing of missile operations.
  • Damage due to leakage from the installations of automatic sprinklers.

Home Structure or Building Insurance: This insurance policy protects a house from all types of risks or dangers. It even protects the permanent fixtures inside a house such as a bathroom and kitchen fittings as well as roof or ceiling fittings inside a house. The insurance covers garages, outdoor houses, rooms or sheds.

Public Liability Coverage: If a third party or guest experience any kind of damage caused to them or of their property within the home of the insured, then this insurance policy offers coverage for the same.

Personal Accident: This home insurance covers the insured’s family members. In the case of the insured’s death or permanent disablement due to physical injury or accident in any part of the globe, the insured person’s family is given compensation.

Burglary and Theft: This policy covers all the valuable items of the insured’s house, such as jewellery, portable equipment, refrigerator, TV, documents etc. This insurance is of great help if your valuable possessions are stolen.

Tenants’ Insurance: This insurance is helpful for a tenant. Being a tenant it would be wise of you to choose an insurance that covers your personal belongings instead of the building cover.

Landlords' insurance: The upkeep of a building or house is the responsibility of a landlord. The insurance policy of a building is not exclusively designed for the landlord as there are tenants also living there. The landlord’s insurance policy is a specially designed insurance for the landlords only and it includes public liability, loss of the rent etc.

Home Insurance Buying Tips

Before purchasing a home insurance plan there are certain factors you should keep in mind such as follows:

  • Decide on the Type of Coverage you Require: For a wide coverage plan you have to pay less out of your pocket at the time of a disaster but the price of the plan would be more. The price of a home insurance plan depends on how much it covers. Thus buy a plan on the basis of your need.
  • Compare the Deductibles: Deductible is an amount you pay from your pocket and applies to the coverage on a person’s property and house. You should pick a policy which has an affordable deductible that you are comfortable paying when you make a claim.
  • Offers the Basic Coverage: Whether you are the tenant or the landlord, there are various home insurance packages for protecting your belongings and home. Each package offers protection against a certain number of events, which result in damage to a property. You should check whether your insurance policy is covering all the basic things before purchasing one.
  • Proper Research for Best Insurance: Before buying the home insurance check the authentic sources for the best insurance, such as from newspapers, the Internet, and recommendations from friends, neighbors, and relatives.
  • Read the Policy Carefully: The ‘home insurance policy’ is a legal contract that states the responsibility and rights of both the insured and the insurance company. On purchasing a home insurance you would get this legal document which you should read carefully and understand the contents and store it in a safe place.

Key Advantage and Features of Home Insurance

You can enjoy the benefits and the advantages of a home insurance policy by subscribing to a comprehensive insurance policy. The following are the key benefits of the home insurance policy.

  • It offers complete coverage due to the loss or damage of your valuable items due to manmade or natural calamities such as riot, fire, earthquake, floods and much more.
  • Some home insurance policies even offer additional covers that include theft or burglary cover.
  • The home insurance policies offer mental peace in times of social strife or other man-made problems.
  • You can easily apply for the home insurance policy because of fast turnaround times and most of the Indian banks offer this insurance product.
  • After the massive loss due to the damage of your home or property, the insurance payout would definitely be of much help and relief during the hard times.

Eligibility for the Home Insurance

To get a home insurance plan there are certain criteria you have to meet. This varies from one company to another. Most of the companies have a minimal set of requirements, which are as follows:

  • An individual or a Company can purchase a ‘Home Insurance Policy.’ The individuals who are the occupant or owner of a residential property and an Indian resident can obtain the ‘Home Insurance Policy.’ A flat or homeowner can buy the ‘Home Insurance Multi-Year Policy.’
  • The authorized member of the managing committee of a society can purchase the ‘Home Insurance for a Society.’ The policy holder would be the managing committee of the society and it would be issued in the society’s name and would cover the building of the society and the common utilities that are in use.
  • Not only the homeowners, even tenants have the right to get home insurance. The contents insurance would cover the items against damage or loss by fire, smoke, theft, flood and much more. It would cover everything from the furniture, personal belongings to the electronic gadgets that include dryers, washing machines, air conditioners etc. The tenants should go through the policy carefully before buying one. Some insurers refuse to cover the items if you stay in a shared flat.

What is Not Covered by the Home Insurance Policy?

  • Intentional destruction of e property.
  • Damage caused to the property by tear and wear over the years.
  • The loss to one’s property as a result of the war.
  • The loss to a person’s unoccupied property for more than a specific period of time.
  • Money in antique, collectibles and cash form.