Insurance cover for your house

Householders' insurance policy provides protection for homeowners and protects householders from all the risks and contingencies they may face at home. It provides protection to the property as well as the insured possessions. The policy covers risk of damage to the policyholders' home, the theft of valuables, and also of breakdown of domestic appliances and accidental breakage of glass fixtures.

These policies require the policyholder to insure their home contents for their full value. With each passing year this value depreciates. When you buy the policy, make sure you cover your valuables at the replacement value. This is a package policy specially designed to meet the insurance requirements of a householder by combining under a single policy, a number of standard policies usually taken by householders. Discount in premium is offered depending upon the number of sections of the policy, opted for by the proposer.

The policy comes with these sections:

Fire and allied perils

Coverage for building:

Covers contents of the dwelling belonging to the proposer and his family members permanently residing with the insured.

Allied perils:

This includes fire, lightning, explosion of gas in domestic appliances, bursting and overflowing of water tanks, apparatus or pipes. It also covers damage caused by aircraft, riot, earthquake, fire, flood, storm etc.

Burglary

This covers contents of the dwelling against loss due to burglary.

All risks (valuables)

This covers loss or damage to your jewellery and valuables by accident or misfortune while kept, worn or carried anywhere in India subject to the value declared in the schedule.

Plate glass

Loss or damage to fixed plate glass in the insured premises by accidental breakage subject to limit of sum insured.

Breakdown of domestic appliances

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

TV sets

Covers damage to TV by fire and allied perils, burglary, or breakage due to accident, and mechanical or electrical breakdown. Any legal liability arising out of injury or accidental death of any person other than insured person's family members or employee as also damage to property not belonging to the insured is covered.

Baggage insurance

Covers loss or damage to insured person's accompanied baggage by accident while the insured is travelling anywhere in India.

Personal accident

Covers death or injury by accident, violent, external and visible means to the insured person named in the schedule and subject to limits specified.

Public liability

Covers insured person's legal liability for injury, 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 person's premises.

It is compulsory to opt for Section IB (fire) of the policy. A minimum of three sections including Section IB have to be taken in this policy. One should choose only those sections that appear relevant. Usually, the essential clauses include risk of fire and allied perils for the building and its contents, burglary, housebreaking, all risk for jewellery and breakdown of appliances.

For the insurance of household items, it would be necessary to group the items in a broad category like furniture, clothing, linen, utensils, crockery etc, and give a value equivalent to the market value. For insurance of breakdown of domestic appliances, the sum insured should represent the current replacement value of a similar item. The claim amount payable would be the amount required to bring the damaged item to the same condition as it was prior to the damage subject to the adequacy of the sum insured.The sum insured under personal accident should not exceed a specified amount (usually 72 months salary from gainful employment).

After-sales services:

The extent and type of after-sales services planned by the developer are also closely monitored on a continuing basis. Even the most effective rating system can only help you asses the legal, credit and asset quality of the home you are planning to buy. So, prudently utilize these ratings to invest for the right buy.