Home and Home Content Insurance in India

Home insurance, also commonly called hazard insurance is the kind of property insurance that offers insurance coverage to the homes. The home owner certainly counts his home as his biggest asset. Home insurance is basically required for the financial security it provides to the property in case of any loss suffered. Home Insurance has two parts—one covers the building, while the other covers the contents of the house.

Home Insurance

The home insurance policy is usually a term contract that is in effect for a fixed period of time. There are mainly two parts for insurance covered. One covers only the building, while the other covers both building and its content.

• Building structure-Insurance covers for a building structure includes compensations paid for losses due to fire, storm, tempest, flood, riot, strike, lightning, explosion & implosion, landslides and rock-slides, bursting or overflowing of water tanks, apparatus and pipes, earthquake and damages to the structure due to acts of terrorism.

• Contents of the home-This coverage is for the loss or damage of the valuables inside the home like the electronic and electrical goods, furniture, clothing, jewelry and any other precious contents inside the home. The contents are covered on the market value of the items and in case of a loss the insurance claim is paid on the value of purchasing a similar new item exempting the depreciation value. This Policy covers your Household contents only and when they are kept in the building but Jewellery is covered against snatching whilst being worn.

 

Content Insurance

Content insurance is the insurance policy that covers all movable goods and personal possessions within your home against loss or damage. Usually the contents insurance policy comes along with the home insurance policy though at times it may be sold separately. This insurance is great for tenant, landlord and property owners.

In case you sell the property during the policy period you can either do an endorsement to the policy changing the Insured premise address or also have the option to cancel the Policy. In case you have rented out your flat and moved out, if your current policy covers only the building then you can continue with same policy However, if your policy covers both the building and the contents then you need to inform the insurer and get the contents removed from the policy. You will be issued a new policy, which will cover the contents and will mention your new address as the “location of risk”.

Insurance covered under policy

• Content insurance policy covers all your Household articles like, Furniture, Fixtures, Clothing, Carpet, Linen, Electrical items like Refrigerators, Air conditioners, Washing machines, DVD players, Television sets, Tape Recorders and Electronic items like Computers are covered under this Insurance.

• Allied perils including Earthquake and Floods along with Burglary, Housebreaking, and breakdown of mechanical / electrical appliance are also covered under this policy.

• The Insurance cover the Jewels worn by your Spouse, Children and Parents or other family members residing with you. The policy covers your contents only and when they are kept in the building but Jewellery is covered against snatching or lost whilst being worn. Policies also include cover in the event of an injury in your home.

• The contents are covered on market value i.e. the cost of buying a similar new item after deducting appropriate depreciation on the basis of the age of the item. Home used for business purposes such as coaching class, Yoga and other commercial activities are not covered under this policy.