When it comes to insurance policies, the requirements vary from customer to customer. This is the reason insurance companies provide a variety of home insurance policies. These insurance policies are designed keeping various factors in mind. The features of the insurance policies vary from company to company. Still, there are some common types of home insurance plans that are available with almost every insurance company in India. Here is a list of types of home insurance policies in India you can buy from.
Standard Fire and Special Perils Policy
As the name suggests, this insurance policy provides cover against specific perils and fire outbreak. It is available for both house owners and tenants. In this time of policies, the sum assured is calculated as the cost of reconstruction of the building. It covers the damages and loss caused because of the following reasons:
- If the damage was caused due to the direct contact of a third party vehicle. Please note that if the damage has been caused by your own vehicle, the company will not reimburse for the damage.
- If the damage was caused due to natural calamities, including volcanic eruption, forest fire, bush fire, lightning, storms, earthquakes, floods, etc.
- If the damage was caused due to explosion or other man-made activities like strikes, damage due to malicious intent, riots, and more.
- If the damage was caused due to overflowing or bursting of water pipes, water tanks, or other water apparatuses installed in the building.
- If the damage was caused due to landslide or rockslide.
- If the damage was caused due to leakage in an automatic water sprinkler system.
Home Structure/Building Insurance
This is a Comprehensive Home Insurance Plan that covers the house from the majority of the risks and dangers. Additionally, it also provides cover for any permanent fixtures inside the building that includes bathroom fittings, kitchen fittings, roof or ceiling fittings, and more. If your house has a garage, outdoor room, or shed, it will cover those structures as well provided you have mentioned them while filling the form for buying the insurance policy.
Public Liability Coverage
You may be a careful person, and the chances of getting hurt inside your home are less, but you cannot say the same for the third person who is visiting your home. Public Liability cover provides coverage against the damage experienced by the third party on your premises. For example, if you are having guests for dinner, and one of them fell from the stairs, the insurance policy will provide you with cover from the legal and monetary liabilities toward that person. It will cover the medical and other associated expenses.
Burglary and Theft
No matter how secure you think your home is, there is always a chance of burglary and theft. It can lead to major financial loss. In some cases, the thieves may not only steal your valuable belongings but can also damage those items that they cannot take with them. The overall loss of such events is always traumatic. This type of home insurance policy will provide you with cover against any such events. It is ideal for those areas where such incidents are common.
There are a lot of reasons that can cause damage to the contents of the house. This type of home insurance policy provides you with cover against damages caused by fire, flood, theft, riots, earthquake, and other natural and man-made calamities. It covers portable equipment, jewelry, refrigerator, documents, TV, kitchen appliances, home theater system, furniture, and more. Also, it will provide you financial assistance in case you have to repair or replace the interiors of the house owning to flood, fire, or any similar event.
Millions of families live in rented accommodations in India. In such cases, ideally, the tenant should buy a home insurance policy specially designed for the tenants. Always keep in mind that you may not own the building, but it is your home till the time you are living in it. Such policies do not cover the building structure but focus mainly on the content of the house. It covers damages caused by both natural and man-made calamities.
If you are a landlord, it is your responsibility to maintain the structure of the building or apartment that you are renting out. These policies are specifically designed for those who own a building or apartment but do not live in it. Such insurance policies will also provide you with cover against the loss of rent and third party liability.
What is not covered?
Though home insurance policies provide you cover against a different type of man-made and natural calamities, to keep up the insurance company’s interests intact most of the home insurance policies will not cover the damages if:
- The owner or the tenant willfully did the destruction of the property.
- If the damage caused to the property is because of wear and tear, some insurance companies provide an add-on for such damages.
- If the property has been lost or damaged because of an ongoing war.
- If the property was unoccupied for a specific period, for example, if someone is not living in the building for more than five years, the insurance company will not cover the damages.
- If the damage was caused to cash, artifacts, antiquities, and similar items, please note that for such items, insurance companies have different plans.
In today’s time, many reasons can result in damage to the structure or the content of your home. It is essential to have a home insurance policy to make sure you do not suffer any monetary loss.