Home Insurance

     

P.Sashidharan Nair, Consultant- Health , Misc.& Specialty Insurance, GI Council

Every Year in our Country there are huge losses suffered by households due to Natural Perils like- Flood, Storm, and Landslides. However, It is really sad to note that in spite of repeated losses due to Floods and rarely due to Earthquake, there has been no urgency or need felt by Indian households to take a General Insurance policy that covers not only the Structure of the House but also the contents which are valuable and costs a lot to replace.

All such losses due to a weather peril like floods dents One’s Savings which may have been kept for some other important milestone like Children’s education, Marriage etc.

This looks all the more ironical when it is easy and economical to cover these assets under a simple Home Insurance with an option either to cover only against Fire and other Perils like Natural Perils – Flood/ Cyclone etc.

Or

Under a Package Policy called ‘Home Insurance’

Home Insurance a Package Policy sold by most of the General Insurers comes Handy to recoup Losses that one may suffer due to various events (Perils) as enumerated below:

The policy offers coverage against Fire and Weather perils apart from other contingencies under various sections:

The policy comprises of ten sections as given here under

Section I - Fire & Allied Perils

Section II - Burglary & House Breaking including larceny and theft.

Covers contents of the dwelling against loss due to burglary, house breaking, larceny or theft.

Section III - All Risks (Jewelry & Valuables)

Covers loss or damage to your jewelry and valuables by accident or misfortune whilst kept, worn, or carried anywhere in India subject to the value declared in the schedule.

Section V - Breakdown of Domestic appliances

Covers domestic appliances against unforeseen and sudden physical damage due to mechanical or electrical breakdown.

Section VI - T.V. Set including Desktops/ Laptops (ALL RISKS)

Covers loss or damage to T.V.Set including VCP/VCR by fire and allied perils, burglary, house breaking or theft, breakage due to accidental external means, mechanical or electrical breakdown.

Section VII - Pedal Cycles (All Risks)

Covers loss or damage to pedal cycles by:

  1. Fire & allied perils
  • Burglary, housebreaking, theft
  • Accidental external means
  • Third party personal injury or Third-party property damage for Rs.10,000/-

 Section VII - Baggage Insurance

Covers loss or damage to insured's accompanied baggage by accident or misfortune whilst the insured is traveling on tour or holiday anywhere in India. Valuables are not covered unless declared and agreed by the Insurer.

Section IX - Personal Accident

Covers Death or bodily injury by accidental, violent, external, and visible means to the insured person named in the schedule and subject to limits specified therein.

Section X - Public Liability

Covers Insured's legal liability for bodily injury or loss of or damage to property of third party limited to amount specified in the schedule and workmen's compensation liability to domestic servants engaged in insured's premises.
It is compulsory to opt for Section IB of the policy. A minimum of three sections including Section IB have to be taken for issuance of this policy.

This is a package policy specially designed to meet the insurance requirements of a householder.

Highlights

Discount in premium is offered depending upon the number of sections of the policy, opted for, by the proposer.

What is important to be noted here is that the cost of such a Basic cover is exceptionally low annually. Something a Houseowner can easily afford.

Most of the company allows such Insurance to be taken online where one has to visit the website of the Insurer and after declaring details of his assets will get a quote of premium and once Proposer agrees for the terms of cover and pays premium Policy can be generated online.

The premium would depend on Coverage opted – whether Basic Fire Cover with Weather Perils that includes Flood and Storm etc. or he also opts for other covers like Burglary, Breakdown of Appliances, Cover against loss of Jewelry etc. Coverage against valuables is at the discretion of Insurer.

Details of various Covers offered can also be found out by visiting any of the Company websites which can also be accessed through GI Council Site.