Home Insurance: Small expenditure to protect your house & its contents
Why do you need home insurance ?
Your house is not just your personal sanctuary anymore but also fulfils multiple needs as your work-place and a 'school or college' for your children.You can legally own a home without homeowners' insurance. However, in most cases, those who have a financial interest in your home such as a home equity loan holder or a mortgagor—will require that it be insured.Your house and its contents represent a significant portion of your investments. Hence, if your house and its contents are destroyed or badly damaged by a fire, natural disaster or any other contingency, you will have no way of recouping your loss if you have neglected to purchase home insurance.The small additional expenditure on your insurance premium will protect your investment in your house.
There could be a burglary, fire, flood and your hard earned investments could even be eroded in one unfortunate contingency. A burglary could take place during your stay and even in your absence from the house during holidays. Rather than take such a risk, why not insure your house and its contents?
Home Insurance with Bharat GrihaRakshaPolicy
There are a variety of comprehensive home insurance options. They would include the house and its contents and could also include a package thrown in for other risks such as a liability cover, plate glass cover, breakdown cover etc.
In case you are confused about the complexities of home insurance why not go in for the standardized cover Bharat GrihaRakshaPolicydevised by our Regulator for a simplified home insurance cover.This policy is available in simple wording from all general insurers.The policy can be purchased either on an annual or a long-term basis. It is a comprehensive policy offering cover against a wide range of perils such as Fire, Natural Catastrophes (Storm, Cyclone, etc) Flood, Inundation, Earthquake, Subsidence, Riot, Strike, Malicious Damages, Acts of terrorism, Bursting and overflowing of water tanks, apparatus and pipes etc.
Burglary is not covered but theft within 7 days due to the occurrence of the insured events is also covered. The policy can be purchased by either the owner or the tenant of the building. The policy also offers in-built covers for loss of rent and rent for alternative accommodation, apart from providing cover for removal of debris and payment of architect's, surveyor's and consulting engineer's fees, upto a specified amount.
Besides offering coverage for the Home Building, the policy also covers General Home Contents automatically (without any need for declaration of details) upto 20% of the Sum Insured for the Building subject to a maximum of Rs.10 lakhs. There is also another optional Personal Accident cover available forthe insured and spouse under the policy of Rs 5 lakhs per person.
A very customer-friendly benefit which is being offered to policy holders is that the policy gives waiver of underinsurance.This is special customer-friendly feature of this policy. In case you would like to read further about the standard policy wordings and their insurance concepts please check out the website https://www.irdai.gov.in/ADMINCMS/cms/Uploadedfiles/StandardProducts/Annexure-I-Bharat%20Griha%20Raksha.pdf for the information provided by the Regulator about this product in simple and easy language.
What is not covered?
Termites and insect damage, bird or rodent damage, rust, rot, mould and general wear and tear are not covered. Damage caused by smog or smoke from industrial or agricultural operations is also not covered. If something is poorly made or has a hidden defect, referred to as pre-existing condition in insurance parlance this is also generally excluded and won't be covered.
What happens in case of claims?
Afterreceive your policy read the fine print carefully and familiarize yourself with the documents required for a claim as well as the procedures to be followed. Whether or not a claim arises take care to follow the various do's and dont's in respect of your property for the policy-period. These do's and dont's are termed warranties and conditions in your policy document, in insurance parlance. (Deviations may prejudice your claim, later on.) In case of doubt, check the requirements with your insurer at the outset.
In case of claims, the policy-holder has to file a claim with his policy number within a specified period which is usually 30 days from the date of loss. However, it is important to ensure that you intimate your insurance company immediately to enable it to send a surveyor for surveying and assessing the loss. A completed claim-form, brief statement of loss, details of reports to any authority such as the police (in case of damage by say rioters or fire-brigade in case of fire) have to be submitted along with photographs corroborating the loss. In general, losses and damages, including those due to theft, fire and flood need be intimated to the concerned authorities such as the police, the fire brigade and so on. A representative of the insurer verifies the loss and submits the report necessary to settle the claim.
The Writer is Retired Manager, National Insurance Company Ltd.
