home insurance in india

home insurance in india

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Does your home require insurance? Just answer the following questions:

Is your house located in an area that is prone to the risks of floods, earthquakes

or burglaries?

Do you own high-value domestic and electronic appliances?

Do you have expensive furniture?

If your answer is yes for the above questions, then you would probably require an

insurance cover for your home.

What can be covered?

Home insurance can cover losses to the structure and contents of your home from any

natural or man-made calamity. The disasters that can be insured against are fire,

earthquakes, storms, cyclones, tempests, tornadoes, hurricanes, floods or inundation,

lightning strike, explosion, landslides, impact by vehicles or aircraft, and bursting or

overflowing of water tanks and pipes However, care needs to be taken that only the

cost of structure is insured and not the cost of land.

Burglary cover: Loss due to burglary or an attempted robbery of valuables such as

jewelers and silverware can also be covered.

Alternative accommodation: In case the family is forced to shift to an alternative

accommodation because of an insured peril, the cost of the additional rent will be taken

care of.

Breakdown of domestic appliances: Composite home insurance covers the breakdown

of ACs, refrigerators and other appliances. If there is accidental electrical or mechanical

failure of domestic appliances, charges for repair will be settled without applying any

depreciation by the insurance company. But items that are over 10 years old may not be

insured.



Other benefits of taking home insurance

1. Cost of premium is small. The cost of the insurance premium in comparison with

the value and cost of the structure and contents, domestic and electronic

appliances, is less than one per cent.

2. Policy covers a range of segments. Home insurance covers almost all kinds of

catastrophic risks, from damages arising from terrorist attacks to breakdowns of

water tanks. The choice is yours - if you think your home is not going to be

damaged by a terrorist attack, you don't need to cover it. In case you are living in

a rented house, you can choose to insure only the contents.

3. Covers cost of temporary shelter. In case of fire or damage to your home, which

makes it unlivable, the cost of temporary rental for six months, not exceeding Rs

1 lakh will be covered.

4. Mortgage Reducing Term Assurance (MRTA). Nowadays insurance companies

also offer cover to home loan borrowers in the cases of untimely death. Under

such cover, if the borrower dies pending payment of the entire dues, the balance

loan amount is paid by the insurance company and as such the burden is not

passed on to the surviving family members. Thus the borrower is enabled to pass

on the shelter and not the loan burden to his family members, in the event of

his/her unfortunate demise on the way, in case however, he/she has taken MRTA

policy. Premium to be paid to the insurance company for such policy is normally

onetime payment and can also be financed by the financing institution.

5. Buy it online. It is simple and easy to buy home insurance. You can buy it online

as well. Just log on to any of insurance companies' website, fill the necessary

details to buy a policy, make the payment and you have home insurance!



How to claim?

In the event of some theft, burglary, fire, an individual can claim insurance from

insurance companies. Some of the leading insurance companies have launched help

lines and call centers that work 24 hours, to speed up the claim process and provide

better service to customers. The claim procedure for most of the companies goes in the

following way:

1. Call the helpline or call centre of the insurance company immediately. Keep

these phone numbers in the emergency list.

2. The call center registers the claim request and asks the individual to furnish all

personal details and details of the policy taken.

3. A surveyor, appointed by the company, inspects the site and submits the loss

report.

4. Even if there is no surveyor, the claimant should submit all the necessary

documents to the company.

5. The company takes 7-15 days to process the claim.

6. When the company approves the claim, a letter is sent to the insured giving the

approved amount of settlement.

7. After completing the above processes, the payment cheque is released.

Documents required for home insurance claim:

Duly completed and signed claim form

Copy of FIR, in case of burglary

Letter of Indemnity from Insured



Instructions for claimant

Following the above mentioned procedure you claim insurance from your insurance

company. But, there are few things which you need to keep in mind while claiming the

insurance. These are:

Keep the helpline numbers and call center phone numbers in your emergency

list.

Write a letter stating all the damages in detail to the insurance company.

Take photographs before cleaning up and salvaging what is left.

Keep damaged material for proof of loss.

In case of burglary, report it to the police.

Ensure that you keep a copy of all information and receipts.



Major general insurance companies in India which offer varied insurance

policies with attractive premiums to suit your needs.

1. National Insurance Company Limited

2. New India Assurance Company Limited

3. Oriental Insurance Company Limited

4. United India Insurance Company Limited

5. Bajaj Allianz General Insurance Co. Limited

6. ICICI Lombard General Insurance Co. Ltd

7. IFFCO-Tokio General Insurance Co. Ltd

8. Reliance General Insurance Co. Limited

9. Royal Sundaram Alliance Insurance Co. Ltd

10. TATA AIG General Insurance Co. Limited

11. Cholamandalam General Insurance Co. Ltd.

12. Export Credit Guarantee Corporation

13. HDFC Chubb General Insurance Co. Ltd.

Source: National Housing Bank



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