FAQs: Part 2
What Are the Exclusions?
a) Exclusions in the structure: Property under construction, residential property used for official/
business purposes and kachcha construction (third class) b) Exclusions in the contents: Books, manuscripts, money (some do not cover them), bonds, shares, securities, consumables, vehicles, etc. Willful destruction of property Loss, damage or destruction caused by negligence, wear and tear, civil war and nuclear weapons, etc. Terrorism (some insurance companies load extra premium for covering this insurance risk) c) d) e)
Under what circumstances does extra premium become payable?
Customers can opt for plans in which the sum assured is increased by a certain percentage every year. A few insurers offer this plan with a nominal add-on premium. Otherwise, based on risk-assessment of a structure, material assets, etc., insurance companies load additional premium. Extra premium also becomes payable if you include domestic servants on permanent employment (maids, drivers) – this falls under ‘legal liability towards servants/third party’.
What are the inclusions without extra premium payment?
These will be expensive belongings, electronic goods such as laptops and televisions, precious goods like gemstones and jewellery, appliances such as washing machine and refrigerator, kitchen appliances, furniture and furnishing Items, personal accident, etc. However, insurance cover inclusions vary from company to company and cannot be standardized.
Period of the insurance policy
Generally the term of home insurance is one year and is renewable thereafter. A few insurers offer plans up to a term of 30 years.