Protect your Home, Insure it

It often takes a lifetime of effort and finances to acquire a home – your largest asset. So, once you have it, you need to protect it and its contents.

Though Insurance Regulatory and Development Authority (IDRA) chairman C.S. Rao is quick to point out that the awareness about taking a home insurance is low as compared to life and health covers, the premium to be paid for a home insurance is considerably small for the value insured.

Does your home need insurance?

If you answer yes for the any of the following questions, then you certainly require a home cover; check out.

• Is the structure of your home worth over 5 lakh? (The value of the building and not the market value of the property).

• Do you own electrical gadgets worth over 2 lakh?

• Is your house located in an area that is prone to the risks of floods, earthquakes or burglaries?

• Are you living in a rented house, but own high value domestic and electrical appliances?

• Do you have expensive furniture?

What can be covered?

Home insurance can cover losses to the structure and contents of your home from any natural or man made calamity.

The disasters that can be insured against are;

• Fire,
• Earthquakes,
• Storms,
• Cyclones,
• Tempests,
• Tornadoes,
• Hurricanes,
• Floods or inundation,
• Lightening strike,
• Explosion,
• Landslides,
• Impact by vehicles or aircraft,
• Bursting or overflowing of water tanks and pipes.

Burglary cover - Loss due to burglary or an attempted robbery of valuables such as jewelery or silverware.

Alternative accommodation - In case the family is forced to shift to an alternative accommodation because of an insured peril, the cost of additional rent is taken care of.

Breakdown of electrical appliances - Home insurance covers the breakdown of AC’s and refrigerators. If there is accidental electrical or mechanical failure of domestic appliances, losses that can be repaired will be settled repaying repair cost without applying any depreciation by the insurance company.

However, items that are over 10 years old will not be covered.

Benefits of taking home insurance.

Cost of Premium is small. The cost of insurance premium in comparison with the value and cost of the structure and contents, domestic and electronic appliances, is less than 1 percent.

Policy covers a range a segments. Home insurance covers almost all kinds of catastrophic risks, from damages arising from terrorist attacks to breakdowns of water tanks.

Covers cost of temporary shelter. In case of fire or damage to your home, which makes it unlivable, the cost of temporary rental for six months not exceeding Rs. 1 lakh is covered under the policy.