Housing Society Insurance

Housing Society Insurance

What Is Housing Society Insurance Policy?

A co-operative housing society is basically formed to manage all the society related issues by the committee members involved in the committee. The management of all the issues of a cooperative housing society with considerable good number of people is quite daunting at times; there are other concerns apart from keeping a track of billing, accounting, visitor management, management of staffs etc that needs attention. There are various risks and liabilities which your building may be exposed to, which your committee might not be able to cope up with.

 

So, what could be done under such situations?

 

Well, the answer is quite clear, opting for an insurance plan which is designed in such a way that it covers all your society’s needs and is also an ideal fit for the risks or liabilities that might struck in the future. What works best for a society is an ideal one stop solution which would cover your society from various perils such as burglary, riot, earthquake, malicious damage, fire, property damage etc. This article will help you understand more about what housing society insurance plan is and how it can benefit you against various perils or unforeseen situations.

Key Features of Housing Society Insurance Policy

The housing society insurance policy is the best way to insure multiple homes under one single plan. Some of the key features of the policy include:

Higher coverage:

Under the housing society insurance policy, you get the flexibility to select the coverage amount depending on the size of your building and the needs of the society. To keep your housing society secured against man-made and natural perils, this policy is definitely a beneficial choice considering the perks it offers.

Coverage for common amenities:

Any sudden fire incident might cause severe damage to the amenities of your building which includes gym, play courts, etc. Opting for an optimum housing society insurance plan will help you to get all of these areas covered under one plan.

Other key features:

The other key features of this insurance plan include protection against standard fire and special perils. Some of the coverage are listed below:

• Fire – The plan covers the losses and damages caused to your housing society due to the fire incident.

• Damage or loss caused due to Lightning Explosion / Implosion

• Aircraft damage

• Loss, damage or destruction caused due to riot strike and malicious damage

• Missile testing operations

• Impact damage due to railroad vehicle or animal not belonging to insured, subsidence and landslide including rock-slide

• Protection of your possessions against natural calamities – storm, cyclone, tempest hurricane, typhoon, tornado, flood and inundation

• Coverage against accidental damage – Leakage from automatic sprinkler installations and bush fire, bursting and/or overflowing of water tanks apparatus and pipes

• Terrorism optional cover offers coverage against acts of terrorism for a nominal premium

Benefits of Housing Society Insurance Policy

Housing Society Insurance Policy comes with its own set of perks which makes it ideal to protect against various perils. Some of the common benefits of the Housing Society Insurance policy are listed below:

• It offers coverage to all contents (covered under standard fire & special perils), against burglary or housebreaking (theft following upon an actual forcible, violent entry of or exit from the premises), or robbery

• It covers loss of money which includes banknotes, currency notes/coins, bank drafts, money orders, cheques, postal orders, treasury notes, and revenue stamps) belonging to the business of the insured whilst securely kept in the insured premises.

• The policy also offers coverage to loss or damage to any safe, strong room or cash box securing money

• It covers you for your liability under the Workmen’s Compensation Act’ 1923 and /or Fatal accidents Act’1855 and / or Common law to pay compensation to employees for bodily injury or death caused due to accidents/occupational diseases arising out of and in course of employment

• It protects you against your legal liability in respect of accidental bodily injury to third parties and or accidental loss and /or damage to property belonging to third parties

Exclusions of Housing Society Insurance Policy

There are certain policy provisions in any insurance policy that eliminates the coverage for some risk types. These are termed as “exclusions”. Some of the common exclusions of housing society insurance policy are listed below:

• There are certain consequential losses which are uncovered under this plan.

• Few standard fire and special peril are also not uncovered under this plan. Those include loss or damage caused by

war or warlike operations, the destruction caused due to ionizing radiations, contamination’s caused by the hazardous radioactive, nuclear fuels or waste, pollution or contamination losses, losses of earnings or fall of the market

• The housing society insurance plan covers completed constructed buildings. Any building which is under construction or not under possession is not a part of the coverage of this plan.

• This plan also does not cover the cost of the land

• Also, if there is any kind of damage caused to your property wilfully that is out of your policy’s scope then it not covered under this plan

• In addition to this, any loss, damage or destruction caused due to fire or explosions, inmates or member of the insured’s household or business staff is not covered in this plan

• Any kind of loss of money, destruction or damage caused by collusion by any employee or agent of the Insured, use of keys or duplicate keys, use of counterfeit money are excluded from the coverage of this plan

• In addition to the above exclusions, liability arising out of willful or intentional non-compliance of any statutory provision, fines, penalties, punitive and/or exemplary damages does not come under the plan

Housing Society Insurance Premium Calculator

Before opting or finalizing on any plan, one should compare with the various options available online. By making use of the housing society insurance calculator online, one can save on the amount which otherwise is added as the commission of the agent if one opts through the offline mode. The housing society insurance premium calculator helps to solve the tricky tasks of calculating the premiums for your plan as per the needs of your housing society.

Compare Co-operative Housing Society Insurance Online

It is very important to compare the housing society insurance plans online from different insurers before buying one, as it will help you to figure out the optimum plan as per your needs or expectations. There are various ways of finding the best pick which includes insurance broker’s website, web aggregator’s website, online insurance company’s website etc. On comparing different policies online, the policy seeker gets the necessary details about the plan such as benefits, features etc which later makes the task of selecting the plan much easier for you. Moreover, you get a detailed and comprehensive data about all the plans in one go without even spending time on visiting the website of different insurance companies through the broker or aggregator’s website.

FAQs

Most frequent questions and answers about housing society insurance claims

1. From which day onwards will a policyholder’s policy get into force?

The commencement date mentioned on the policy schedule is the day from when the insurance coverage of the policyholder begins. This day could be any date selected after the payment of the premium, however, it would be no later than 15 days.

2. How can a policyholder claim for reimbursement?

The policyholder can register for the claim process within the 7 days of the claim registration. He or she needs to send the insurer a duly signed claim form along with the mentioned documents within a span of 15 days. After this is done, the approved claim will be paid within 30 days.

3. What is the procedure after the home insurance claim is registered?

The surveyor would contact the customer within 48 hours of the registration and a claim form is sent to the customer’s correspondence address within 7 working days.

4. Would the company pay for removal of debris for the reconstruction of the property and if yes then how much?

The company needs to pay a maximum 1% of the total claim amount for the removal of debris for the construction of the property.

5. Is it possible to insure leased properties?

You can insure the property if you have any financial interest in the property.

6. What are the consequences of the rejection of the housing society insurance plan?

On rejection of the housing society insurance plan, the surveyor would contact the customer within the span of 48 hours. The claim form is sent to the customer’s correspondence address within 7 working days time.

6. What are the consequences of the rejection of the housing society insurance plan?

On rejection of the housing society insurance plan, the surveyor would contact the customer within the span of 48 hours. The claim form is sent to the customer’s correspondence address within 7 working days time.

7. If the policyholder’s insured house if sold off, what will happen to the special peril policy?

The policy stands to be cancelled and the policyholder is no more insured under the policy from the time the transfer of ownership becomes effective. The insurer would then refund the premium amount for the remaining insured period.

8. Is housing society insurance sufficient enough to suffice the needs of each individual members of the society in case of unforeseen situation?

Housing society insurance policy is a good idea; however, the coverage amount of this policy may not be sufficient enough to meet the needs of individual members of society. Hence, it is better, to sum up, your housing society insurance plan with a home insurance plan in order to maintain a healthy insurance portfolio.

9. Who are eligible to take housing society insurance plan or home insurance plan?

The owner of the house is eligible to take the housing society insurance plan, however, the contents can opt for insuring the contents in the house owned by them. The housing society or condominium is eligible to take the insurance policy for the entire building complex in its own name.

10. Why a housing society insurance plan is ideal for a co-operative housing society?/b>

Going with an entire housing society insurance plan is considered to be ideal as it covers the entire society as the common areas such as lifts, staircases, water tanks, gardens, gyms, playhouses, clubhouses etc are also covered.

Housing Society Insurance Companies

Housing Society Insurance Companies

Housing society insurance policy can get the structure of your building insured in case of unforeseen perils. Each homeowner of the housing society gets individual coverage and this coverage is provided based on the built-up area and construction cost. On behalf of the flat owner, the whole apartment can be covered only by the residents’ association. If the coverage offered is not adequate, then the association is responsible for the increase.

Companies Offering Housing Society Insurance in India

There are various companies which offer housing society insurance in India. Some of the insurance companies that provide the top plans are ICICI Lombard, Tata AIG, HDFC Ergo, Bajaj Allianz, Future Genrali and Digit Insurance. These companies offer one-touch insurance solution that covers you and your society from various perils such as earthquake, property damage, riot, burglary etc.

Inclusions of Housing Society Insurance Policy in India

Housing society covers the losses and damages caused to your housing society due to the fire incident. It also offers coverage for the damage or loss caused due to Lightning Explosion / Implosion. In case of any aircraft damage, this policy covers the losses incurred. Man-made calamities such as riot strike and malicious damage are covered under this plan. In addition to this, damages caused due to missile testing operations are also covered. Impact damage due to railroad vehicle or animal not belonging to insured, subsidence and landslide including rock-slide

This plan comes with an extra layer of shield to help protect the insured for their possessions against natural calamities such as storm, cyclone, tempest hurricane, typhoon, tornado, flood and inundation. Also, the plan offers coverage against accidental damage – Leakage from automatic sprinkler installations and bush fire, bursting and/or overflowing of water tanks apparatus and pipes. Terrorism optional cover offers coverage against acts of terrorism for a nominal premium

Benefits of Housing Society Insurance Policy

Some of the common benefits of the Housing Society Insurance policy include:

• coverage to all contents (covered under standard fire & special perils)

• coverage for burglary or housebreaking (theft following upon an actual forcible, violent entry of or exit from the premises), or robbery

• It covers loss of money which includes banknotes, currency notes/coins, bank drafts, money orders, cheques, postal orders, treasury notes, and revenue stamps) belonging to the business of the insured whilst securely kept in the insured premises.

• Offers coverage to loss or damage to any safe, strong room or cash box securing money

• Covers you for your liability under the Workmen’s Compensation Act’ 1923 and /or Fatal Accidents Act’1855 and/or Common law to pay compensation to employees for bodily injury or death caused due to accidents/occupational diseases arising out of and in course of employment

• Offers protection against your legal liability in respect of accidental bodily injury to third parties and or accidental loss and /or damage to property belonging to third parties

• Provides coverage for any sudden fire incident might cause severe damage to the amenities of your building which includes a gym, play courts, etc. Opting for an optimum housing society insurance plan will help you to get all of these areas covered under one plan.

Exclusions of Housing Society Insurance Policy

There are certain policy provisions in any insurance policy that eliminates the coverage for some risk types. These are termed as “exclusions”. Some of the common exclusions of housing society insurance policy are listed below:

• There are certain consequential losses which are uncovered under this plan.

• Few standard fire and special peril are also not uncovered under this plan. Those include loss or damage caused by war or warlike operations, the destruction caused due to ionizing radiations, contaminations caused by the hazardous radioactive, nuclear fuels or waste, pollution or contaminations losses, losses of earnings or fall of the market

• The housing society insurance plan covers completed constructed buildings. Any building which is under construction or not under possession is not a part of the coverage of this plan.

• This plan also does not cover the cost of the land

• Also, if there is any kind of damage caused to your property willfully that is out of your policy’s scope then it not covered under this plan

• In addition to this, any loss, damage or destruction caused due to fire or explosions, inmates or member of the insured’s household or business staff is not covered in this plan

• Any kind of loss of money, destruction or damage caused by collusion by any employee or agent of the Insured, use of keys or duplicate keys, use of counterfeit money are excluded from the coverage of this plan

In addition to the above exclusions, liability arising out of willful or intentional non-compliance of any statutory provision, fines, penalties, punitive and/or exemplary damages does not come under the plan

Compare Housing Society Insurance from Different Companies

It is very important to compare the housing society insurance plans online from different insurers before buying one, as it will help you to figure out the optimum plan as per your needs or expectations. There are various ways of finding the best pick which includes insurance broker’s website, web aggregator’s website, online insurance company’s website etc. On comparing different policies online, the policy seeker gets the necessary details about the plan such as benefits, features etc. which later makes the task of selecting the plan much easier for you. Moreover, you get a detailed and comprehensive data about all the plans in one go without even spending time on visiting the website of different insurance companies through the broker or aggregator’s website.

House Insurance

All about Home Insurance in India

What is Home Insurance?

As it is rightly said, “Home is not a place, it’s a feeling”. No doubt you have seen the best places in the world, but the home is the only place where your heart lies. Most of the people invest their entire hard-earned money in building their dream home no matter how big or small it may be. Hence, it is very vital to protect this beautiful dream with an optimum insurance plan to protect it from threats, man-made or/and natural calamities, etc.

Since “Prevention is better than cure”, it is must to stay protected with a plan rather than getting bankrupted during any unforeseen situation.

The home insurance plan offers complete coverage against monetary liabilities incurred due to loss or damage of your home and/or its contents caused due to natural and man-made perils.

Key Benefits of Home Insurance

Home Insurance has various advantages, making it a wise pick to protect your home against unpredictable situations/calamities. Few of these benefits are listed below:

• Covers household contents
• Secures your assets from any misfortune
• Offers comprehensive coverage to contents of the home
• Reduces your stress during unforeseen situations
• Comparatively lower premiums than other insurance policies
• Timely insurance payouts help family with the quick rebuilding process
• Offers flexibility to choose between best plans for your home
• Covers fire, burglary and other perils
• Online options with fewer documentations

Who Should Buy Home Insurance?

For homeowners:

A home insurance plan is a must under several situations for a homeowner. One such instance is that if the owner of the house has mortgage, then the company who is funding this mortgage will ensure that whether your house is insured or not before lending any money. This is because the lender wants to assure that its financial investment in your house is protected in case of any risks or perils. The homeowner can buy such policies online through web aggregators, insurance brokers, insurance company’s website etc.

More than the physical structure of your house, this plan covers the attached space to your house for example deck or a garage. Also, if you or any of your family members are found legally responsible for accidentally damaging someone else property then the liability coverage might help pay legal fees, repair costs and other medical expenses.

For tenants:

Being a tenant, it is obvious that the landlord won’t cover your personal belongings. In addition to this, the tenant is supposed to pay for any damages that occur accidentally to the property. For instance, if there is a short circuit at your house which spreads the fire to your neighboring houses as well, then indeed you are the one who needs to pay the loss/damage.

Also, home insurance for tenants covers both content coverage and liability coverage. Under this, the content coverage deals with replacement or repair of loss/damaged possessions whereas the liability coverage protects tenants if you or any guests cause any damage to the building.

Simple Guide to Buying Home Insurance

In order to protect the homes, people have been investing in home insurance plans for years to ensure that the home they build from the hard-earned money is insured if some unfortunate calamities come up. However, there is seen an increase in the number of insurers providing vast range of plans, hence it becomes really very difficult to select the right one. As you scroll down, you would find a simple guide that will help you to buy an optimum home insurance plan.

• Look for a policy that offers you comprehensive coverage against different calamities. This can be achieved by comparing the coverage and premium of the various policies online

• Always consider the cost of deductibles charged with the policy while considering the premium amount charged by a particular policy

• Check for the review or feedbacks of the customers of the insurer

• Look for the claim settlement turnaround time, customer services provided by the insurer

• If you are not very familiar with the technology or are unable to understand the policy, you need not worry. You can consult a reliable insurance agent that can help you figure out the best suitability plan for you

• Also, while you are collecting quotes from different insurers, do ensure that you take more information about the plan from your current insurer as well

• Ensure that you are clear with all your requirements pertaining to the coverage you need

• While comparing the various policies online, check for the amount of the premiums as it will be a part of your future expenses

• See to it that whether your insurer assures quick settlements

• Get more information about how you can cancel or renew a home insurance policy

 

Add-on Covers

An ideal home insurance plan can cover all the financial setbacks during any unforeseen situations. Besides the basic coverage that this plan offers, there are several add-on covers that one must opt for. This extended protection is like a cherry to the cake as it provides enhanced protection in case of unfortunate events such as natural calamities, fire, burglary and other perils.

Following are the add-on covers that can be added to your policy to enhance your plan coverage:

Temporary resettlement cover

Due to any unforeseen events such as fire, heavy floods or any other man-made or natural perils, your house might be completely damaged and would be unfit for stay. In such situation, you will be needed to shift to temporary accommodation. Under this cover, your policy indemnifies you for the expenses related to transportation, packing and other cost associated with alternative accommodation.

Loss of rent cover

This cover is ideal for homeowners who have rented their house to the tenants. Under this cover, the homeowner would be covered for the loss of rent due to any calamities that make the house unfit for staying. Here, the insured would get the indemnified amount until the house is ready and safe for living.

ATM withdrawal robbery cover

This cover is an apt choice owing to the increasing theft and burglary occurring at ATMs. Under this cover, it reimburses you with the amount you lost in case you get robbed instantly after the money is withdrawn from the ATM machine.            

Lost wallet cover

If your wallet gets stolen or lost, this cover will help you to reimburse the loss incurred. Also, the reimbursement includes the replacement cost of the wallet, cash present in the wallet, cost of other important documents.

Dog insurance cover

In case your dog dies due to an accident or disease during the policy period, then this cover can insure your dog.

Key and lock replacement cover

This cover is perfect for both homeowners as well as tenants. It provides coverage for the loss or theft of your vehicle keys, loss or theft of the keys of your home and reimbursement of the cost of a locksmith for making new keys (for home and vehicles).

Employee’s compensation cover

If you come across any unfortunate situation which leads to severe injury during the term of your employment then this cover compensates for the injured insured person.

Public liability cover

If your property gets damaged or someone gets injured in your place of residence, then this add-on cover will reimburse for the cost of repairs arising because of the damage.

How to File a Home Insurance Claim?

Every insurer has its own deadlines within which the insured can inform the insurer about the loss. This deadline can vary from 7 to 15 days depending on the insurer you have opted for. Since the time duration is limited, it is wise to inform the insurer as soon as possible. There are various insurance companies which offer the flexibility of informing via email or through SMS.

You need to lodge an FIR and submit its copy to the insurer for filing a claim. Apart from this, documents such as repair estimates, fire brigade report, medical officer’s certificate for death or disability, investigation report by police, suppliers original invoice for replacement, invoice of own articles and court summons needs to be submitted.

Note: The document requirement may vary from insurer to insurer

Inclusions and Exclusions of Home Insurance

Inclusions:

Theft and burglary:

A home insurance policy protects your house by insuring the losses incurred due to theft & burglary.

Earthquake:

The policy also covers this natural calamity and offers coverage to the insured property if lost or damaged.

Fire and perils:

Protects against damages caused due to aircraft damage, fire, lightning, missile testing operations etc

Electrical breakdown:

Offers coverage for damage caused due to electrical breakdown of the insured electronic appliances.

Manmade calamities:

Safeguards your belongings from damages caused during the riot, strike or any other malicious act.

Exclusions:

Any kind of war

The loss or damages caused due to wars, invasion etc are not covered under this plan

Valuable collectibles

Loss of precious collectibles le coins, stamps etc are not covered under this plan

Losses due to willful misbehavior

Any losses that are done to the property willfully will not be covered under this plan

Aged content

Any object which has aged over 10 years will not be covered under this plan

Construction loss            

Damages or losses caused due to third party construction does not fall under the coverage of this plan

Tips to Lower your Home Insurance Premium

Did you know that you can lower the cost of the premium for your home insurance plan?

Yes, you can!!! Scroll down to see the top efficient tips that can bring down your home insurance premiums.

• Opt for more than one covers as this will make you eligible for the various discounts

• Agree to share the burden of repair; this will help reduce your liability and also reduce the value of the premium

• Do not insure the contents of your house which are more than 10 years old. There is no point in insuring such old contents, so see to it that you make a proper list of products you wish to insure

• Installing safety equipment at your home can make you eligible to get discounted premiums.

• If your building has round the clock fire safety alarms then you are also eligible for the discounts on your premiums

FAQs

Most frequent questions and answers about home insurance claims

1. How to choose the sum insured for home insurance?

There are various components that would help in deciding the sum insured one must opt for while buying home insurance plan. Due any unforeseen situation such as fire, windstorm or any kind of natural/manmade perils, your home insurance plan must be capable enough to cover all the losses. So before thinking about the insured amount you must consider factors such as the structure of the house, materials used to build the house, garage, deck or front porch attached to your house etc. Ensure that your coverage should be equal to the replacement cost of your house. Also, it is wise to have enough coverage for your personal property in order to get your belongings replaced in case of damage or loss.

2. What is the average cost of homeowner’s insurance?

The home Insurance premium in India depends completely on the coverage you choose. For instance, if you are opting only for fire and burglary cover, then it should not cost more than Rs.200/ lakh of sum insured. On the other hand, if you want cover for both breakdown and cover for jewelry as well then the cost of the premium would probably go up to Rs. 1000/ lakh type.

It is essential for one to look not only at the benefits or cost of the insurance but also consider the value it offers. Talking about the fire insurance policy, one should consider buying it for a home in India. Also, add on with some other policy for other requirements.

3. What is the best home insurance?

There are different insurers who offer this type of policy and each of this plan have their own set of specialty. However, summing over few parameters the Home Insurance plan offered by HDFC ERGO is an ideal pick as it not only covers the structure of your home but also assures safety for all the belongings and possessions.

This plan is a perfect pick as it offers coverage up to 5 years and also offers discount up to 25% along with an additional discount for security features. Apart from this, the plan comes with a unique cover for homeowners with long term coverage and ensures easy and seamless process owing to its instant online policy.

The plan covers a wide range of risks against earthquake, strike, terrorism, theft, burglary, larceny, explosion, implosion, flood, fire, lightning, larceny etc.

4. Who has the cheapest home insurance?

The cost of the home insurance plan depends on various factors such as the coverage or add-on cover you have opted for, the sum insured which you have selected, etc. The cost of the premiums of the various companies differs from one to another. You can compare the plan online by listing down your requirements and add-on covers, this way you can find the best plan that suits your requirement and your budget.

5. How do you insure your home?

You can insure your home with a comprehensive home insurance plan which protects your home and its content against different types of threats and risks. Buying this kind of policy will help you in avoiding monetary liabilities and at the same time ensure no stress

6. What are Standard Fire and Special Perils Policy?

This is one of the traditional covers that offer coverage against fire or allied perils whichever are mentioned in the policy. This plan covers right from the plinth and foundation of the building to the stocks, furniture, fixtures, fittings etc.

The standard cover would offer coverage for fire, aircraft damage, bush fire, bursting and/or overflow of water tank apparatus, pipes, leakage from the automatic sprinkler installation, missile testing operation, landslide/rockslide, explosion, implosion, lightning, other natural perils etc.

Some of the add-on covers for this policy include forest fire, start-up expenses, spontaneous combustion, debris removal, additional expenses on rent for alternative accommodation, spoilage material damage, leakage and contamination cover, earthquake etc.

Why Home Insurance has become a must today – All you need to know

Home
is always the best place to rest. It is a place of peace and finality and also
entails lots of memories, emotions, time as well as investment of money. We
invest our entire life’s saving in buying or building a house but barely feel
the need of protecting it. Thus, providing protection to this pleasant place
against natural or man-made calamities is an imperative concern.

According
to a J.D Power Survey, it is found that only 48% of customers fully understand
their policy. So if you are one who is struggling in making heads or tails of
home insurance then no need to worry, you are not alone. Scroll down and stay
tuned to this page to know in depth about home insurance.

As
Benjamin Franklin once said, “One Ounce of Prevention is worth a Pound of
Cure”.  The key tenet behind the concept of Home Insurance is to protect
your symbol of independence against any unforeseen calamities. Investing in a
good and trusty home insurance policy is just not the shield of the structure
of your cherished home but also protects your home from threat situations like
fire, earthquake, and destruction of house due to riots or burglary. It also
offers protection to the implements, appliances, items and prized possession of
the home.

Perks
of opting for Home Insurance Policy

Opting
for a home insurance policy is unquestionable however there are other benefits
as well that will convince you to buy this policy. A home insurance policy
provides comprehensive coverage to both structure as well as content of your
home. It also reduces your stress in case of unpredictable circumstances.
Moreover, applying for home insurance policy is simple with dynamic turnaround
time and its availability in almost all banks across India. In addition, if you
are a policyholder who pays his or her premiums on time than you might get
massive assistance for your family to move on and put their lives back together
after facing any calamities.

Inclusions
and Exclusions

Home
Insurance policy covers losses to the content and structure of your home due to
catastrophic natural or man-made calamities. It includes fire and peril covers
such as aircraft damage, riot, strike, storm, cyclone, flood, lightning, fire
and missile testing operations. The policy also offers coverage against loss or
damage due to earthquakes (many policies do not cover overflow of sea, lakes or
rivers or flood due to earthquake). It also covers man-made calamities.

On
the other hand, subscribing for comprehensive home insurance plan features
exclusion such as loss or damage due to wear and tear and depreciation or loss
of money and electronic equipment due to over-running or excessive pressure.
Also, the policy does not cover loss or damage caused due to war, act of
foreign country, invasion or by nuclear war.

How
to file a claim?

 Different insurers have
different deadlines for informing the insurer about the loss. This deadline can
vary from 7 to 15 days of time, hence it is vital to do it as soon as possible.
With the evolution of modern technology and innovation in Insurance Industry,
now one can claim digitally through SMS or simply by sending an e-mail.
However, before filing for a claim you are required to lodge a FIR and a copy
of it needs to be submitted to the insurer. There are few other documents as
well that you need to submit along with the FIR report.

Thus, safeguarding your house has become much
more easier and quicker than before, and hence it becomes obligatory for
homeowners to shield their house against any calamities by opting for optimum
home insurance plan and stay peacefully.

Title Insurance will provide a layer of security for Home Owners

Strap: Act mandates promoters to obtain Title Insurance to secure Development of the project

In the last four years of the current government, several initiatives have been taken to simplify various issues related to their sector. In India, real estate as a sector continue to witness various issues such as lack of transparency and several frauds related to title of that property. The role of the Real Estate (Regulation and Development) Act 2016 (RERA) has brought much needed relief to the consumer.

This Act mandates promoters to obtain title insurance to secure development of the project. We would come at across various instances when investors after buying the property find that land title is on some others name. In such cases buyers of the property suffers as project is either stalled raising a title objection or there is long legal battle for the case. But this new Act will bring in transparency and new regulation which was needed for the Indian Real Estate Sector.

While several insurers are planning to come out with the title insurance, two of the private players and one public sector insurers are eyeing to launch product in this segment. Basically, title insurance will protect the potential owner of a property against any financial loss caused due to defects in property title, disputes or even frauds. Policy also covers, legal costs, out of court settlement.

Such policies would be long term in nature and promoters of the property will pay the premium of the title insurance until the construction is completed. Total coverage of such products will be based on cost of land and construction along with profit margin of the builder.

Even as its new segment for the insurance sector, growth of title insurance will help all the players ranging from buyers to builders, promoters and even financers of the real estate project. Though exact quantum of premium numbers is still not known but title insurance can become one of the major segments for the insurers as any project which is developed on area more than 500 sq meters or has more than eight apartments mandatorily requires to buy title insurance.

Is My Home Insured!

Today every Indian dreams of owning, at least, one house in their life time. They spend huge amounts including their savings and home loans, taken based on future earnings, for building a place of their own.

Even the utilities they collect and the various eclectic items they arrange to make it their own cosy pad, costs them monetarily and emotionally.

But what if this dream home is damaged or the contents are stolen by way of theft or an earthquake has damaged it beyond repair. Or of all the things, vandals have created havoc with the contents of the house along with other surrounding houses.

Think, if you have gone on a foreign trip and when u return, you realise that your cherished home theatre system and latest laptops and gaming consoles are nowhere to be seen.

It’s during such situations that an all inclusive home policy comes to your rescue. It ensures that you are financial compensated for the damage to your home and the items stolen or spoilt due to any of the listed happenings.

Such situations are very well possible; irrespective of the amount of security and vigilance we might put in place.

Hence it is very pertinent in today’s connected world; where every customised white good like refrigerator, television screen etc can cost close to lakhs of rupees each; that a home owner takes an all inclusive home insurance policy.

Let’s look at few USPs of a Home Owner’s Policy –

With burglary, fire, earthquake or destruction of house due to riots being a common aspect in pockets of India, you should look at what are the most probable reasons for which you need a cover for your home.

1. Areas which are flood prone or earthquake prone will need an insurance to secure them against the damage. Choose product which covers the incidents you want to insure against.

2. Do check the claim paying record of the insurance company along with user review, if any.

3. Check the reputation and customer service record of the company.

4. Depending on whether you are an owner or tenant, you can go for structure and content insurance or just content insurance, respectively. The aspects are detailed below-

  1. Structure Insurance – It covers losses due to structural damage of the home from natural calamities such as earthquakes, floods, etc., manmade calamities and terrorist attacks. The amount is calculated as the sum required for rebuilding the house and not the market value.
  2. Content Insurance – It covers the damage or loss of contents of the house, such as electronics, jewellery, furniture, etc. and the coverage is usually on the market value of the contents. The market value is the current value less depreciation. in case you are staying on rent, you can purchase this policy to cover your belongings.
  3. Liability Insurance / Personal Accident – The family members and incidental people ( like maids) or visitors present in the house during the incident, are covered for injurious sustained. You are also covered for any damage to an adjoining property due to any incident in your house eg a fire in your house ending up burning a neighbour’s house, is also covered.
  4. Group Insurance – This is usually taken by the society or the builder to cover the building structure, which encompasses all the homes. You should take an individual home cover, as an add on to the group policy, since individual homes are not sufficiently covered under group policies.

Home insurance policies are yearly in nature. Hence remember to evaluate the structural aspect and the contents before renewing the policy. Further, if given an option, go for the replacement value policy and not the actual cash value policy.

Peace of mind for every Home Owner

Home insurance does not cost much, but is a stress reliever in case something unforeseen happens. And the insurance payout helps in at least rebuilding your cherished dwelling thus moving on with life.

Home insurance: Protect your dream house

Home Sweet Home! The fulfilling of a dream with your life time savings.

So when it comes to protecting your home, it’s not just about safeguarding against structural damage or theft. Your home can be shattered in a moment with the advent of any natural calamity or man-made factors.

The cost of rebuilding a house or buying a new place would invite huge investment. The right home insurance policy will ensure that  you don’t end up using the funds you would have kept for your later age in rebuilding your dream home.

Example- A house destroyed by an earthquake can be rebuilt by setting aside about Rs 6-12 a day. Thats the cost of buying home insurance, which most people consider as an unnecessary expense.

Your home insurance usually covers what it would cost to rebuild your home after such a disaster.

What is covered in a Home Insurance Policy?

A Home insurance policy gives you the option to buy insurance for

  1. The building (structure) of your home and/or
  2. The content (belongings) of your home.
  3. It also provides liability coverage if someone gets hurt on your property and decides to sue you.
  4. Homeowners insurance also covers shelter costs, so you don’t have to face crazy hotel bills.
  5. If you injure someone, the third person is hurt on your property, or you damage someone’s property which is adjoining your home, then home insurance may cover the legal expenses and medical bills.
  6. Many mortgage companies insist on home insurance cover equal to or more then the loan amount, when they approve home loans.

What is not covered

A standard policy has exclusions including earth movements (landslides, earthquakes, and sinkholes), power failure, war, nuclear hazard, government action, faulty zoning, bad repair or workmanship, defective maintenance and flooding.

Windstorms are typically covered, including tornadoes, although insurance companies exclude tornadoes or hurricanes in some high-risk areas.

Home insurance does not cover floods, earthquakes or acts of war. You can purchase flood insurance or earthquake insurance separately.

Looking for your own home insurance company will ensure you get the one with the lowest rates.

May the road rise up to meet you, and may you always be properly insured.

Don’t wait for floods to Insure your Home!

Strap: Premium of such a policy is very low and individuals should not wait for the mishap to happen.

In the year 2015, South India had seen torrential rains which had left the city submerged in the water for few days. Insurance claims had touched nearly Rs 5,000-6000 crore in South India particularly Chennai. The floods resulted in destruction of properties and took many human lives. Soon after that incident, demand of home insurance took-off and general insurers saw boom in the insurance sector.

Similarly, fortnight ago there was similar situation in the Vasai-Virar area where water remained at the elevated level for nearly three days, disrupting homes of thousands of people. Point I am trying to make is that, it is not necessary to buy insurance policy after damage is done. But alertness of individuals can make a big difference in a flood like situation, when almost everything is lost-Insurance would help the family stand on their feet again.

Anyone who is the owner of flat or even independent building which is less than 30 years old can purchase the policy, this time frame depends on the Insurance Companies. Individuals can not only insure their homes but also jewellery, valuables and even paintings. Policy can be a period of 1-5 years and Insurance Companies have a calculation to arrive at sum insured. Penetration of Home Insurance is very low and under 1% of the population has house covered by Insurance Companies

For example, if sum insured of flat is on agreed value basis than total square feet mentioned in the sale deed is taken into account which is multiplied by Ready Reckoner Rates. If flat is of 600 square feet and Ready Reckoner Rates is Rs 10,000, then sum insured would be Rs 60 lakh. But if sum insure of flat is on reinstatement basis then cost of construction as per data available with local government is taken into account instead of Ready Eeckoner Rates. So for the same example, if cost of construction is Rs 5,000, than sum insured would be Rs 30 lakh.

Premiums for such policies would be anywhere between Rs 1,000-4,000 depending on the sum insured. But it would vary from Insurance Companies and sum insured. Having said that, cost of yearly premiums in home insurance would be friction of amount spent on leisure activity on weekends. However like every other policy there are inclusions and exclusions before buying the policy.

Typically, loss to contents, portable equipments, jewellery and valuables among other things are covered under the policy. Even add on covers like loss of rent cover, dog insurance cover, public liability cover, key and lock replacement cover among other things are available. Its better to buy home insurance cover before valuable items are lost in the flood like situation we have seen in different part of the country.

A Tale of ‘No Home Insurance’

KKM Mahesh is a retired government officer, currently residing with his children in Bangalore. He has a beautiful house in Chennai, built over a period of time by the couple, with their life long savings.

Mahesh didn’t want to leave the house lying vacant so has let out half of it as a means to cover up those recurring house expenses.

In fact, the floods which swept Chennai last year did not really affect his house and he was grateful for that. He believes he took a very prudent decision buying his retirement ‘Dream House near the sea and away from the busy central areas of Chennai.

His friend Guruprasad who owns a similar house close by had recently purchased a home owners packaged policy for Rs.1cr. He explained to Mahesh the benefits of the policy, which were as below –

Package policy – Home Insurance

Structure including contents

Sum assured – Rs. 1,00,00,000
Premium/year – Rs. 25,00

0

This included furniture, electrical items like fridge, television and other gadgets, jewellery, kitchen appliances, other general items and even boundary walls and fences. The policy allowed the contents to be covered for 5 years and structure for 10 years at a stretch.

Guruprasad suggested Mahesh should buy a similar cover for his house. But being a person who thought twice before spending every rupee, Mahesh felt those few thousands were just waste of money. Guess, he was a bit too off mark.

It was during Cyclone Vardah that the need for Home Insurance cover dawned on him.

With the cyclone landing in Chennai, in a matter of few days, the surroundings of his house turned from the beautiful flora to mud and debris. The trees came crashing into the house and all his prized possessions lost their worth. Life came to a standstill!

Gosh! How could he be so myopic in his outlook towards the greater benefits of a Home Owners Packaged Insurance? Under present circumstances, the insurance company paid out sum assured upto the damages incurred (Rs.50Lacs) to his friend Gururprasad while Mahesh had to search for ways to finance the restoration of his house and its contents.

He wondered, only if he had taken the home insurance policy, he would have been at peace of mind today.