Tuesday , October 24 2017

HOME INSURANCE





Home is a place where the family lives. It is the place where people spend their hard earned money to obtain and maintain a good house. But, people do not feel the need to secure it by means of Insurance.

The realisation of getting it insured comes when some loss is faced by means of theft, natural calamity. Thus, it is very crucial to get the place where you are living secured by Home Insurance Cover.

WHAT IS THE NEED TO TAKE HOME INSURANCE?

  • Act of God

Flood, Earthquake, lightening these are kinds of natural calamities that cannot be ignored. Due to which the loss suffered is huge. Although it is not so frequent due to which the premium is also quite less as compared to those places which are more prone to natural calamities.

  • Theft and Fire

Due to vacation/some professional reason usually, the house is left alone. But, we all need a mental piece that our expensive belongings such as electronics, jewellery etc will remain safe be it from theft or fire. Thus, to gain that security one should have Home Insurance.

WHAT ARE THE BENEFITS COVERED UNDER HOME INSURANCE?

Home insurance provides cover for the damage caused to home due to any of the following reasons:

  • Fire
  • Lightening
  • Explosion
  • Any other space devices dropped
  • Riots, strike or burglary
  • Storm, cyclones etc.
  • Forest fire
  • Earthquake
  • Volcanic Eruption
  • Flood
  • Terrorist activity
  • Loss of personal belongings

WHAT ARE THE FACTORS THAT AFFECT THE PREMIUM OF HOME INSURANCE?

  • Sum assured

Sum assured is the amount for which the Insured is taking the Home insurance Cover. To calculate the sum assured you may choose any of the following methods

  • Indemnity Value Method

This method is used to cover those belongings which are depreciating in nature. Therefore, in order to calculate the sum assured one has to take into consideration the cost of those valuables and should exclude the depreciation value of the same

  • Agreed Value

In this method, the sum assured value is calculated on the basis of cost per square foot of the house, as per local rates of the area in which the house is situated. Example- If the house is 1000 square foot and the

The cost to rebuild the structure is INR 2000/sq. foot. Then the sum assured will be INR 50Lac.

  • Value of Contents & Valuables Items in home

Premium is also dependent on the contents and the valuable items of the home that are owned by the family members

  • Geographical Location

Premium is also dependent on the area/geographical location of the home. For Example Premium is high for places which are more prone to natural calamities as compared to other places

NOTE

Even though the Loss of Property and personal belongings is more than sum assured, then also the company is responsible for losses only up to sum assured

WHAT ARE THE POINTS DUE TO WHICH HOME INSURANCE CLAIM IS REJECTED OR DENIED BY INSURANCE COMPANIES?

  • If Wrong information is shared with insurance company
  • Pre-existing damage
  • Damage caused due to defects in structure of construction
  • Damage caused due to Improper handling
  • Due to low quality of material used in construction
  • Damage due to theft by any employee of yours

Check Also

HIGHLIGHTS OF BUDGET FOR FY 2017-18

HIGHLIGHTS OF BUDGET FOR FY 2017-18 No Cash transaction over INR 3 Lac- As per …

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »