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| Homekit |
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 Insuring Your Home |
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Insurance is nothing but guaranteeing against a loss. Nothing compares to the peace of mind one gets upon knowing the fact that he or she will not suffer a loss in the event of a calamity, whether it is natural or man-made, that could befall on one's home, whether it be an apartment or an independent villa. One of the many insurances that are offered by a financial/insurance agency is Home Insurance. Also called Home Owner's Insurance, this service means that the risk of a loss is transferred to the banking or insurance agency in lieu of a monthly payment for a specific number of years, that is made by the individual who has applied for the insurance.
Home loans in India are widely divided in two segments, Property Insurance and Insurance against Loss of Contents. |
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| Property Insurance |
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| Every home insurance company has its own policies for insurance coverage. In most cases though, home insurance agencies insure the building structure of an apartment or villa, as the case may be, for its reconstruction value. |
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| The following cases are covered under property insurance |
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- Damage due to fire, explosion of gas in domestic appliances or lightening
- Damage due to bursting of water tanks, apparatus or pipes
- Damage due to riots, malicious or terrorist acts
- Damage due to flood, cyclone, inundation, storm, hurricane, tornado
- Damage due to earthquake and landslide
- Damage caused by aircraft, vehicles on road
- Third party liability and personal accident
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| Ideally, any insurance coverage should include the expenses of rebuilding an apartment in the event of it being destroyed to such a point that it needs to be completely rebuilt. This can be the case in the event of an earthquake, fire or any other man-made calamity as well. The value of coverage extended in case of property insurance is based on the approximate expense that could be incurred on the reconstruction of a house and not on its market value. This amount is calculated by multiplying the built up area of a house with the rate per square foot. |
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| Contents Insurance |
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Contents insurance is insurance against damage due to fire or natural disasters, theft and burglaries of movable goods, possessions or contents that are not a fixed parts of a home. This includes house hold appliance such as furniture, electronic goods and clothing. The insurance where calculated is equivalent to the market value of household contents.
The amount is assessed either on the reinstatement value basis or on market value where the value of the item keeps depreciating with time. |
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| This insurance covers the following calamities |
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- Damage to goods due to fires, either by electrical short circuit of otherwise
- Damage of goods due to storm or flooding
- Damage caused by explosions
- Damage to domestic appliances due to electrical and mechanical breakdown
- All kind of damages that could occur to jewellery, cameras and watches and other valuables
- All kinds of accidental breakage of plate glass fixed in doors and window frames
- Theft and vandalism
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| Claiming Home Insurance |
| The settlement procedure with regards to home insurance is a highly process oriented one. The company will ensure that the details of the policy are undertaken, after which the site will be inspected. This will be undertaken by a surveyor appointed by the Insurance Company. Once the surveyor files his report stating that there is no foul play, the claim is processed upon the submitting of all the documents. These documents include a duly completed and signed claim form, copy of the FIR, copies of all the invoices and price lists and the Letter of Indemnity. The company then dispatches the approval of the claim letter along with the settlement amount that has been approved. |
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