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Bought your Dream Home? Dont forget the home insurance

By SiliconIndia | Monday, 18 July 2011, 04:34 Hrs

Bought your Dream Home? Dont forget the home insurance

Bangalore: Your home is the most precious asset and also a big investment. It is crucial for every house owner to insure his property against all the unpredictable calamities. Home insurance is steadily gaining momentum in India these days. There is a huge potential lying in India for such insurance policies. The general insurance companies offer policies that cover your home against natural calamities such as fire, floods, earthquakes, or landslides. This requires you to pay a premium based on the value of your home belongings and it will be assured.

The policy is basically of two types: One is the standard fire policy that compensates for any loss caused due to fire. The second policy covers for all the articles and valuables of your house. The home insurance rates differ from company to company based on the policies. For an Indian resident the insurance services are very different when compared to the services provided for a NRI. It is not that only if you owning a house you can opt for a home insurance. Even if you are residing in a rented apartment you can apply for home insurance to insure the valuable in your house.

Home loan insurance premium varies as per the tenure and amount of the home loan. Till the age of 60 one can apply for a home insurance with certain medical reports. The amount of premium increases with the age. Regular rate of premium is charged if you are medically fit. On the contrary, if you are identified in the risk categories in the test reports, the premium can be proportionately higher.

A home insurance is mandatory in cases of the demise of the borrower of a home loan, the repayment burden falls on the surviving family members. And if the members are unable to repay the loan amount, the insurance company repays the loan amount and prevents the bank from taking over the underlying house to recover the dues.

The insurance cover will not be granted if the house is unoccupied for a period of one month and there has been some theft or calamity that has occurred in their absence. The premium for loss/damage to the house against fire, natural calamities ranges from

60-65 for one lakh coverage. The premium for insuring your home against theft varies from

25-30 which will cover your property and valuable against burglary.

Some of the householder insurance policies available are: Future Generali India Insurance Company Limited, TATA AIG General Insurance Co. Ltd, ICICI Lombard General Insurance Co. Ltd, Royal Sundaram Alliance Insurance Co. Ltd, United India Insurance Co. Ltd.

House holders policy has to be renewed every year. There are 10 Sections, these sections cover the building and its contents against damage from fire and allied perils, specifically structural and other damage from fire, lightning, riots, explosion of gas in domestic appliances, riots and natural calamities such as floods and earthquakes, loss/damage due to Burglary excluding jewelery, gold and silver articles, securities, cash-and televisions and bicycles which are covered under other sections 'all risks' against loss or damage to jewelery and valuables, loss of or damage to baggage while you're traveling in India.

Things to know while insuring your home

Provide exact value: It is very important that you provide the exact value of your property to the insurance company. If the value is more you may have to pay a higher premium.

Details of appliances: Every minute detail of the appliances should be reported to the company including the model number and name year of purchase that will help in easy settlement of claims.

Keep updating information: When you replace a insured item or obtain a new one, it is important you to inform the insurance company. Then the policy needs to be revised. Even if there is any change in your address, report it to the company else the company can ignore your claim totally. If your are relocating for more than four years i.e. if you are leaving the house for more than four years, you must inform this to your insurance company.

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