All You Need to Know About Home Insurance

October 8, 2020
home insurance guide

Your home is your haven. Your permanent asset. And just like you would insure any other asset you need to insure your home too! Home insurance safeguards your home against unknown adversities that can bring you unexpected yet substantial financial losses. However, it is startling to find that there is just about 1% who are aware of these insurances! So what are the things you have to keep in mind when you go in for home insurance?

Who can get home insurance?

Any person – be it an owner or a tenant – who is a resident in India can avail of a home insurance policy. Here, the home includes a flat in an apartment complex too. Even organizations or firms owning property for residential purposes can avail of this insurance.

Why should I go in for a homeowners insurance?

In most cases, your home is an investment for a lifetime. And it has to be protected against any untoward incidents. When you invest in a home, you should ideally invest in a comprehensive home insurance policy to protect your dwelling in case of both natural and man-made damages, and safeguard your home against multiple calamities. You also have to ensure that when you invest in policy all events are covered under it.

What is covered?

Home insurance provides coverage against

  • Fire and allied natural perils
  • Burglary & theft

A person can also get additional cover for specific purposes like

  • Liability cover
  • Electrical or Mechanical Breakdown cover
  • Jewelry cover

Are there any exclusions?

Yes. These are the common exclusions.

  • Any existing damage which is already there before taking the policy
  • Loss caused due to any Illegal or intentional acts by the policyholder
  • Loss caused due to war or invasion, nuclear peril
  • Loss due to any government order or confiscation

Are there different types of property insurance policies?

There are different types of policies for homeowners. The most common ones are:

  • Standard Fire and Special Perils Policy
  • Home Structure/Building Insurance
  • Public Liability Coverage
  • Personal Accident
  • Contents Insurance
  • Burglary & Theft
  • Tenants’ Insurance
  • Landlords’ insurance

So, how does one fix the insurance amount?

There are two options:

  1. Based on the market value of the property
  2. Based on the reinstatement value

Do proper research before you decide on which one is ideal for your home.

So, what about maintenance?

Your responsibility as a homeowner does not end with getting property insurance. The insurance is just a cover, and you have to ensure you carry out everything including maintenance and other periodical repair works that you would normally do. This also means that you have to take all necessary precautions to prevent the losses even if you are insured.

What if you have a grievance?

The first thing to do is to contact your insurer. This can be done online or by dropping in. The insurer has to legally acknowledge your complaint within 3 working days and attempt to resolve the issue within 15 days. If you feel that the company has not addressed your grievance, you can raise an issue with the Insurance Regulatory and Development Authority of India (IRDAI).

Where does PPD chip in?

As a niche builder, we at Prime Property Developers can put you in touch with the best insurance companies. We also offer ample and sufficient help so that the processing of the insurance is hassle-free

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