As clichéd as it sounds, Home is where the heart is. There is no place on Earth that is as comforting and peaceful as our homes. Regardless of whether it is rented or owned, we take the utmost care in maintaining and decorating our homes with hand-picked articles in designated places. And, it will break our hearts if something unfortunate were to happen to our home or any of the things in it. The worst part of all this is re-buying and replacing all these articles be it your furniture, home appliances, jewellery, or any of the most prized possessions that you hold dear.
This is why it is essential to plan your finances in a way that you protect your home and its belongings against unfortunate events like floods, earthquakes, burglary, etc. In this article, we help you understand the basic and most sought after policies along with all the inclusions and exclusions in the exhaustive coverage.
Types of Home Insurance Policies
Every home insurance company in India has carefully curated a wide range of policies to suit the variegated needs of its customers. The different types of policies help them realize the need for home insurance in India and to choose the right policy based on their needs. Listed below are some of the primary home insurance policies:
Standard Fire and Special Perils Policy:
As the name implies, this policy shields your home against any loss or damage caused by a fire outbreak and certain risks. It can be bought by both the owner of the home and the tenants residing in it. This policy applies to the following types of properties – dwellings, offices, shops, hospitals, places of worship, etc.
Listed below are the various special risks and fire accidents which can be covered:
- Natural calamities like floods, storms, lightning, earthquakes, tsunamis, forest fires, volcanic eruptions, etc.
- Man-made disasters like fire accidents, strikes, protests, and riots, or any other damages or losses caused by other ill intentions.
- Damages or losses incurred due to government restructuring like direct contact of vehicles, road, and rail. However, damages caused by your vehicles are excluded.
- Damages caused by an explosion and/or overflow of water pipes, tanks, leaks in sprinkler systems, or other similar equipment.
- Demolition or subsidence of your property and/or due to rockslides, landslides, and missile test operations.
However, there are some exclusions in the policy that will not fall under the exhaustive cover like loss or damages caused by war, national invasion, nuclear operations, similar operations, theft/burglary by terrorist activity, pollution, and contamination.
The policy also does not cover damages caused by electrical appliances like power fluctuation, electricity leakage or overpressure, etc. Loss or damage caused to any important documents like manuscripts, account books, money, stamp papers, etc.
The building or Home Structure Policy:
A building or home structure policy deals with the coverage involving the entire structure of your house from any possible uncertainties and risks. This policy is an ideal option for owners of homes or buildings who rent out their space for residential or commercial standings. The following are the list of structures and inclusions under this policy:
- Protects any permanent installations in the house including the ceiling or roof, accessories in the kitchen, and bathroom.
- Protects any additional structures like garage, pool, outhouse, shed, backyard, gardens, patio, etc.
- Provides financial support in terms of paying your rents or bills of temporary accommodations up to a certain period or until the structure is rebuilt.
The Liability insurance, as the name suggests shields your property from any sort of liability like damages caused by and/or in your insured property. The policy protects any guests or third parties who have suffered damages physically or to their property. Additionally, the policy also covers liability due to any legal issues of the insured house.
Personal Accident Insurance:
This policy is specially designed to protect you and your family in case the family’s earning member of the insured person’s death or is permanently disabled due to accidents or physical injuries regardless of the place of the unfortunate event.
However, the policy does not cover death or disablement caused by pregnancy or childbirth, sexually transmitted disease, intentional injuring of self, suicide or attempted suicide, death while under the influence of alcohol or drugs, people employed in aviation or ballooning adventures, or death caused due to breach of law with any criminal intent.
Burglary & Theft Insurance:
On the off chance, burglary or theft was to take place in the insured house, the burglary and theft insurance covers the cost of the stolen or damaged assets like cash, owned goods, etc. This policy is offered to both houses and business holdings leaving them reassured and relieved off financial losses or leaving the property unattended for an extended period. The policy also covers damages caused to the premises or property during the burglary, forced entry, armed robbery, etc.
With that being said, there are exclusions in the policy which are as follows – loss or damages occurred due to shoplifting involving you, your family members, or employees in case of business holding. The policy also does not cover items stolen with a duplicate key unless obtained with force or violence.
On a final note, home insurance in India is the best and ideal option for you to remain stress-free and happy without any financial burden or implications hanging over your head.