Before zooming in on any, one needs to be aware of what a home insurance ideally covers.
When it comes to home insurance, the knowledge of the average Indian home buyer is still low. To help our readers identify the best option for them to protect what is probably one of the most expensive investments, HappyKeys talked to Mallika Kumar, an insurance agent who specialises in getting her clients the best for their homes.
– There are several kinds of home insurance policies available while providing home loans. Before zooming in on any, one needs to be aware what it covers. Ideally it should include fire and natural calamities, especially if you are living in Delhi-NCR.
– Theft and burglary, fixed glass damage, third party damage, and appliance damage are generally not part of this general coverage unless specified.
– Though sum-assured is calculated on the built-up area of the apartment and the construction rate per square feet, this amount can vary. This is because the construction cost depends upon the type of materials used and the quality of the construction.
– There is a concept cost premium cost when it comes to insuring your home. This includes aspects like structure and contents of the house,
– The premium cost depends upon a wide range of factors. If the cover is opted for structure and the contents of the house against fire and allied perils such as natural disasters, then the premium may not be very high.
Watch out for these while buying insurance:
– An insurance against fire invariably also includes factors like malicious damage cover, damages due to impact by rail/road vehicle or animal, bursting and/or overflowing of water tank
– A home insurance cover includes coverage of expenses on rent incurred by you in case of loss or damage to the premises caused by an insured peril rendering the premises unfit for occupation and forcing you to shift to an alternative accommodation for a maximum period of 30 days (fine print reading required though).
– There is a specific home insurance against burglary and theft. It generally provides cover to the home’s contents against burglary and theft. Unless specified otherwise, this is subject to certain restrictions and could be subject to a maximum payment of 10 per cent of the benefit sum insured or Rs 5,000, whichever is less.