You have fulfilled your biggest dream of buying a house of your own. You lovingly decorate it with all your heart, get the interiors done and make it a “Home”. Don’t you think it necessary to save your haven from any unforeseen hazards or calamity? What would happen if there was an earthquake, flood or a short circuit which could lead to a fire? Or, damage caused by terrorist attacks? Nothing. Yes, nothing if you are prepared with a householder’s policy. Most general insurance companies provide insurance for owned as well as rented flats.
Coverage: There are varieties of policies offered in the market. These policies provide insurance against damages caused by fire, lightning, riots, floods, earthquakes, bursting of water pipes, rail, vehicle or animal accident, landslides etc. Even destruction due to missile operations is covered by some! This is not all, loss due to fire burglary, any peril, personal belongings, furniture and other contents of the house, personal accident or even disability can be selected to protect oneself; jewelry, television, refrigerator, furniture and so on.
Extra: After the terrorist attacks, Insurers have an add-on cover – terrorism cover. To opt for this cover you will have to pay extra premium but it is worth every penny as it will cover damages caused to the house or its content by terrorist.
There are other add-on covers available for
- damage to fixed glass
- rent, in case the policyholder has to move to a rented house till the insured house is under repairs.(usually, this is paid for only a month’s time)
- payment of legal costs
- new products (not insured at the time of purchase but) damaged within 30 days of buying the device due to any event.
Basis: Companies consider the rebuilding cost of the house to decide the sum assured (construction amount differs across cities).
Exclusions: Following are usually excluded from the householder’s policy
- loss due to theft if the insured house is unoccupied for more than 2 months
- damage caused by war, invasion, acts of foreign enemy, hostility or war like situations
- harm due to gold bars, precious stones, art work, cheque books etc. until specifically asked for coverage ( that is, by paying extra)
- regular wear and tear
- loss due to theft when the calamity or event occurs
Premium calculations:
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- based on whether the house is owned or rented
- age of building
- if the area is prone to fires, floods or riots
Claim process: To claim the amount you will have to inform the insurance company at their registered number
- policy number
- date and time of accident
- approximate loss incurred etc.
Then the company will send a surveyor who will assess the damage and report to the company; after which the claim would be paid.
TIP: It is important to avoid the loss, theft or misplacement of the policy documents. To ensure this always keep a digital copy saved on your e-mail or a physical copy in office or at a relative’s place.
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