Covering All Points
on personal spending capacities and requirements. Select contents that you want to get under the insurance umbrella. Coverage amount may depend upon the reinstatement value or the current value of the product in market. Also included is the personal accident cover concerning permanent disability or death of policyholder. In such cases, the nominee gets predetermined compensation amounts. Home insurance provides coverage for the loss of or damage to one’s personal property and possessions due to natural and manmade calamities. a) Natural: Fire, storm, earthquake, tornado,
cyclone, flood, landslide, lightning, etc. b) Manmade: Fire, burglary, theft, aircraft damage, malicious damage, terrorism, strike, riot, explosion, etc. Insurance Regulatory and Development Authority of India (IRDAI) categorizes this type of insurance as ‘property insurance’.
You’ve taken stock of the kind of protection your house needs, now evaluate which policy provides the most comprehensive protection for your specific risks. Be accurate when deciding on the extent of cover. Does it offer the options of covering the structure, content or both? If you live in an area prone to a certain kind of natural disaster, it makes no sense to take a home insurance policy that won’t cover you for it. Do note that the premium would vary according to the extent of cover and type of cover you want.
Clearly define the valid amount for various categories like structure cover for fire and allied perils, and contents cover for fire and allied perils (cover for furniture, electronic equipment and application breakdown). Also, the option for burglary cover is provided to save your home from theft. This step gives a clear picture of what comes under protection along with the exact cover amount offered by the insurer. Deciding the amount for cover, and cover for different categories and kinds of damage requires that we are clear about the actual worth and value of our house and its contents. Should there be a fire, how much will it take to replace all the electronics and furniture in the home and to repair the house? If there
This covers burglary or theft at home, robbery of the contents of the home, contents that have been placed in safe custody during temporary absence from home, contents that have been removed to private accommodation (other than one’s home) that is