Home insurance
Insurance is a part and parcel of our life with regard to self-security as well security of various assets belongs to us. Our life is the prized gift of God. Everyone wants that, he/she should live happily and safely. At the same time, the assets belong to us including movable and immovable properties should also have protection. After all, all these are related with our hard earn money. We face many distress and calamities, either man made or due to natures wrath during the life cycle. It may happen to someone at any point of time. In majority of the cases, we are not even ready to face such an emergency situation. Therefore, we should insure our life as well assets including our home. Someone rightly said, Home sweet home, there is no place like home. Yes, our home is the most valuable property which is attached with close emotional bond. Many of us build our home only once in life time.
First of all, let us see what really home insurance means. Very simply to say, Home insurance policies protect our homes. As already mentioned, the protection is from different calamities like man-made or natural. Few examples of such calamities includes, fire, burglary, earthquake, storm, flood, typhoon, hurricane, tempest, etc. Now, the next question comes to our mind is, what actually the Home insurance covers It covers both the structure as well the contents of your house. Lets look into it in more details. Structure means the outward as well inward structure of the house. Contents consist of the precious belongings of the house. As home is one of our treasured possessions, therefore many emotions are attached to it. There are so many sweet recollections are also attached to it. But, due to any calamities, the memories and other emotional factors cannot be covered by the Home insurance policy, but the structure and the contents as referred above can be covered under Insurance. Therefore, the need of Home insurance arises.
If youre sweet home is insured with a proper home insurance policy, then in case of untoward happenings, the Insurance policy covers the financial ruins faced by you. If the whole house or part of it or some fixed furniture and other contents are damaged, then be sure, the Home insurance policy will bring some sort of comfort to you. The insurance company will reimburse an amount of money, depending upon the type of policy and areas covered on the basis of terms and conditions of the concerned policy.
Mr. X lives in an apartment and due to electrical short circuit, his flat caught fire. He has a colored television, a computer and a home theatre among other possessions. The said gadgets/ equipments also damaged due to the fire. Are these items are also covered in the policy Let us come to another case story. Say Mrs. Y is traveling by a Public Bus. She lost her traveling suitcase due to theft. Is she entitled for coverage under the Home insurance Policy The answer in both the cases is affirmative, but of course subject to terms and conditions of the policy.
As already stated, you can take one option by which, only the structure of your house may be covered. In another option, both structure and content part can be covered. The difference is all about the calculation of premium. If the Insurance policy is comprehensive, i.e., covering both of these, then you will get some concessions too. First of all, lets us see what are the factors covered under the structure column. Ideally, structure part covers the walls of the house, roof and flooring of the house. For any damage or perils on these parts and for subsequent repair and remake of the same, the provisions of the concerned insurance policy will accordingly compensate you. In many Policies, coverage for fixed plate glass (for example, windows) is also covered. As far as contents of the house are concerned, it covers all consumer durables including electrical and electronic items, furniture, fittings, jewellery, etc. Many other special items like utensils, apparels, etc. are also covered. At the time of buying the home insurance policy, the Insurance Company will ask you to furnish certain declarations in the form. You have to mention about the assets & property covered under the insurance and also to declare the related value. Suppose, you have a Television worth ten thousand rupees. It is understood that, you are not going to get the same amount as compensation in case of any damage of the same later on. There are some formulas to calculate the value and depreciation with regard to it. In addition to this, you have another option to insure you and your family members against any kind of accidental injury resulting death or disability, liability to third party and domestic servants. You have the freedom to choose whether to insure all entirely or separately. If many sections are covered under the same policy, then Insurance companies will offer you some discounts while calculating the premium.
Let us look at another case story. Mr. A is a drunkard. He often comes home drunk. One day, he could not control himself and destroyed a portion of walls at his home including some electronic gadgets. One fine morning, the said gentleman gave a tinkle to his Insurance agent asking for a claim form. Is he entitled The answer can be given by even a lay man. Yes, the answer is a big no, he can not claim. In case he claims, the Insurance Company will not entertain him. Even in some special situations, such as loss caused by warfare, invasion, destructive act of foreign enemy, mutiny, etc., majority of the companies will not reimburse in such occasions. Loss due to radiation, nuclear explosion, damage caused by terrorist activities, willful destruction of property, as stated above, etc. are not covered unless some very special provisions provided by the concerned Insurance Company.
What is the procedure to choose a right Insurance Company which can best meet your demands Prior to that, you have to make yourself doubly sure that, you need the home insurance for the security of your family members, the structure of the home and last but not the least the possessions at home. Then you have to choose the company with the best Policy options. The following aspects have to be given weightage from your end. First of all, you have to see the reputation of the company. A Company with a strong standing with higher standards and financial steadiness is the best choice. The company has to give guarantee to you for its workmanship. Secondly, the company should be available at your service whenever you are in need. The company should be of national repute. The representatives should be well connected. Thirdly, the quality customer service is the factor. The support and service should be from highly professional representatives of the company who knows the job well and can respond at once. Finally, choose a Company which has a wide variety of products available for you. Then you have to freedom to choose whichever best suits you. Lastly, the price factor is also important. Down to price (premium) is also not good. Keep in mind that, you will get the service for what you have paid for. After all, you can read in all the brochures of Insurance Companies as follows: Insurance is the subject matter of the solicitation. Conditions Apply. Please refer to the policy contract for details.
Now, let us look at the claim procedures generally. All Home insurance contracts are available with related information, rules and regulations provided by the insurance company. Different product brochures are also available for customers. The proposal form also provides all such information. Therefore, you have to submit your claim as per the guidelines provided by the Company and the representative of the Company. In case, the Company does not entertain you for obvious reasons, you have the right to ask explanation in writing. You can take legal support, whenever necessary. The Insurance Regulatory and development Authority (IRDA) will help you in this regard. However, some important points are mentioned by which you can proceed for a normal claim procedure. Firstly, the loss or damage of your Home or person should be reported immediately. You should not hide anything nor should conceal any fact. Secondly, as soon as the Insurance Company receives the complaint, they will issue a Claim form. You have to submit the same along with an estimate of damage you suffered. An itemized estimate with separate values is more advisable. Thirdly, the Insurance Company will organize inspection at site, provide them your fullest co-operation and answer all queries during such inspections. Fourthly, in case of serious damage, a licensed surveyor may be required. Moreover, in case, the cause of damage could not be established by the insured person, then in such a situation, the insured person has to prove that the loss is due to insured peril. Finally, you have to go for an agreement of claim amount with the Company. In case, there is any excess found later on then obviously that will be deducted by the Company.
Normally, in India, there is comprehensive Home Insurance Policy, which is available with almost al the Companies which covers the structure, contents and the members of the family and the option for payment of premium is a yearly premium. Many home Insurance policies around the World cover some other important aspects. They have different products covering various areas such as, personal property, family liability protection, Guest medical protection, additional living expenses protection, etc. Among these, the personal property coverage gives the Insured person protection against loss of movable property such as a music system, bicycle, furniture, clothing etc. The family liability protection covers protection to all insured person who become legally obligated to pay for covered accidental bodily injury, property damage to others, etc. Under guest protection, suppose your neighbour comes to your home and fall in to accident inside your premises. Then in such cases, there are provisions to cover it.
Worried about calculating premiums Dont worry. If you are Internet savvy, you can find the premium by yourself. The Insurance Regulatory and Development Authority (IRDA) have instructed all the Insurance Companies to display the premium rates related to different policies in their respective website. Some Companies have already adhered to this and some of them are on the way to implement the same. This also enhances the transparency level and you have the option to choose the best Company. Lets us have a look at the following table for calculation of premium. The calculations are approximate and can be differ from case to case. This is just to give you first hand information.
Cover Premium
a) Building 2000000 1000
b) Contents 500000 250
c) Appliances 100000 250
d) Television 25000 250
e) Plate glass 10000 100
f) Baggage 20000 150
g) Personal accident 1000000 2000
h) Public liability 20000 10
Note: Do not forget to ask for discounts/ concessions if you want to cover so many items together.
So, put your hands together. Call your Insurance agent. Choose a good Company. The agent might cover a variety of Companies in todays competitive world. And go for the Home Insurance, if already not covered. Enjoy a happy and carefree life.
Other Articles
