Types of Home Insurance Plans
Listed below are the common types of Home Insurance Plans:
This category of home insurance plan provides cover to any home structure or building against damage/loss caused by natural and/or man-made calamities. In case of complete destruction of a building, this insurance policy provides claim for the value of reconstruction, as applicable under the policy terms.
This category of home insurance plan provides cover to the contents kept inside the home. Contents may include precious items such as jewelry, refrigerator, piece of art, or important documents. With this type of home insurance, personal possessions in your home are covered against natural and/or man-made calamities.
This category of home insurance plan provides cover for building/home structure and its contents. It provides complete protection to your home. This insurance policy provides financial cover against any loss or damage occurred to your home due to covered perils.
Need for Buying Home Insurance Plan
Following are the key reasons to buy a Home Insurance Plan:
• Natural calamities cause huge disasters that account for severe financial loss. A home insurance plan provides a financial cover to your home against Natural disasters.
• Man-made disasters such as robberies, thefts, riots, strikes, and terrorism cause damages to your home. A home insurance plan protects your home against such damages.
• Disasters don’t come with prior notice, so to be on the safe side, it is imperative to secure your home and/or personal possessions such as Household appliances, jewelry, & other valuables. A home insurance plan covers your home and its contents.
• A disastrous event may cause damage/loss to the third party while staying at your home. Buying a right home insurance plan also provides cover against third party liability.
Policy Benefits under Home Insurance Plan
A basic home insurance cover provides following benefits.
Standard Fire and Special Perils Cover
A home insurance policy provides cover against natural & man-made calamities. You can get cover against below given perils.
• Explosion / Implosion
• Aircraft damage
• Storm, Flood, Inundation, Cyclone, Typhoon and Tornado.
• Subsidence / Landslide
• Riot, Strike, and Malicious damage
• Leakage from Automatic Sprinkler Installation
• Bursting and / or overflowing of water tanks, pipes, and apparatus
• Any damage resulting from any Rail/ Road vehicle or animal belonging to third parties
• Missile Testing Operation
• Bush Fire
These are customized home insurance policies offering basic cover to the home structure and the contents against fire & allied perils. Upon choosing a package policy, you can also get protection against third party liability, theft and burglary, terrorism, earthquake, etc.
Add on Covers/Riders Available with a Home Insurance Plan
Following are the add-on covers, you may attach with a Home Insurance Policy.
Cover for Household Items: This add-on provides cover to household appliances such as television, refrigerator, washing machine, air conditioner, etc. against the loss or damage.
Cover for Precious Items/Valuables: This add-on provides additional cover to the precious household items such as jewelry, luxury watches, important documents, etc. against loss or damage.
Theft Cover: This add-on provides cover to the contents of the building against damage caused due to burglary and theft. Some insurers offer it as an add-on cover, whereas others offer it with home insurance policy as an inbuilt cover.
Public Liability Coverage: This add-on provides cover to a third party or its property while residing in the insured’s home. By opting this add-on cover, the home insurance policy pays for such damages, subject to the policy terms.
Rent Cover: There are instances when your house gets damaged due to some calamity and for getting your house repaired, you have to shift in a rented accommodation. This add-on provides cover for such rent expenses.
Earthquake Cover: This add-on provides cover to the insured property against loss/damage caused due to earthquake or landslide/rockslide caused by the earthquake.
Terrorism Cover: This add-on provides cover to your building structure and its contents against loss/damage caused due to terrorism or acts of terrorism. It is one of the vital covers, you should consider to buy with a home insurance policy.
(These add-on covers and its benefits may differ from home insurance plan to plan)
Important factors to consider while selecting a Home Insurance Plan
Listed below are the key tips that help you make the right buy for a Home Insurance Policy.
• You can also avail huge discounts on premium rates upon choosing policies with longer tenure ( beyond one year standard tenure). It helps you to get cover for your home plus makes the policy affordable as well.
• It is advisable to choose the right sum insured after evaluating your home value and its content. So you can get the compensation for all the loss/damage caused to your home.
• Prior to buying a home insurance policy, it is recommended to go through the policy terms & conditions.
• Choose riders precisely.Add-ons are available at an additional cost, so choose add-ons/riders wisely.
• Compare home insurance policies online before making a final decision.