Is it necessary to have home insurance in India?

Is it necessary to have home insurance in India?

Buying a home is the sole substantial investment for most individuals who have started earning and are now willing to take their lives ahead over to the next step. However, the unfortunate fact that one can own a residence without an enforced home insurance policy makes one neglect the importance of home insurance altogether. It may not seem crucial by the look of it but in-depth it is one the most key things that would protect one’s house from various perils. 

 

Home insurance policy allows you to put part of your money aside in the form of policy premiums in the pursuit of saving you from an uncertain event that the future beholds. This plan shields the insured against damages caused to the house or belongings within it. The policy ensures financial protection from various catastrophes that can cause losses to the assets in the house and other liabilities. In the occurrence of an unfortunate/unpredictable event, home insurance policy acts as a savior against the losses incurred during the mishap.

Why home insurance?

Since home insurance is not a mandate purchase whilst buying a house it is often regarded as optional, not important, or not so useful. That is one of the biggest delusions one can have but it is justified by the masses because it is about investing towards an uncertain cause that may or may not happen. However, it has only begun to become prominent since the rise of natural or man-made calamities in today’s times. The huge losses caused to the lives of the people and houses in the events of Karnataka floods, Cyclone Fani, Kerela floods and Bihar floods are some of the most destructive examples of occurrence of natural calamities in the year 2019 that has put dwellers under loads of financial and mental stress. Home insurance is crucial because it guards one’s home against:

• Natural Disasters
• Riot, strike and other malicious damage
• Burglary or theft of jewelry and ornaments
• Fire, etc

 

Home insurance usually comes with add-ons that not only protects the home but also additional assets or liabilities in it like furniture, electronics, or any other valuable appliances. It can provide financial security with the appended advantage of replacing your covered assets. Depending upon the home insurance one has opted for, one can get damaged goods replaced instead of merely claiming an equivalent amount. It may safeguard an individual from the financial and emotional breakdown that occurs after a natural disaster worrying about the potential expenses that would be involved in repairing the house.

 

Home insurance is also highly recommended because it isn’t as expensive as the myth associated with it portrays. It tends to seem like an undesired expenditure, but the benefits provided by the scheme are handsome. For an insured amount of about Rs 40 lakh, one can easily get a home insurance policy with a premium of Rs 2,000 per year (approx). Additionally, the most comprehensive policy, which covers even the belongings as well can be bought at an estimated price of Rs 5,000 per year.

 

Based on the selected policy, home insurance plans are also understood to protect one from lawsuits. In a nutshell, it is not just about insuring your home but also an ideal pick for one’s peace of mind.

Reasons why home insurance in India is necessary:

Protection against natural/manmade perils

Calamities or unforeseen situations don’t come knocking the door; these events are highly unpredictable and occur to anyone, at point of time. These calamities behold the potential to ruin one’s livelihood and a person’s lifelong investment. In such scenarios, home insurance policy steps up and covers one’s home from numerous natural or manmade perils such as fire, lightning, storm, cyclone, typhoon, aircraft collision, floods, riot, strikes and malicious damage, subsidence and landslide/rockslide.

 

Home insurance policies are beneficial either way. It can help one cover losses along with an option to get the damaged goods or objects replaced thereby not having to make the purchase again with an equivalent amount that is often received as the claim or redemption. Home Insurance plan has a variety of features and benefits. Some of them are:

Extended Cover Scheme: It ensures that one’s house, all the assets, and liabilities are protected from almost all the types of catastrophes that will result in destruction to property.

Temporary living expenses: If a catastrophe is mortifying enough to make a house uninhabitable then upon the policies chosen one may obtain some monetary benefits that would help obtain a temporary residence until the damaged property is repaired/rebuilt.

Adaptability in cover options: Some insurance policies allow individuals to choose the perils from the available options taking their geographical location, weather, political scenarios, etc into account and customize the services as per their needs.

Home Insurance grants cover not only to the house, its belongings but also to some additional structure that would fall within the premises of your house. Some of them include a fence or a boundary, a small outhouse, a separated garage and a swimming pool.

Protection from lawsuit

A lawsuit can be the most unprecedented threat that can ever exist however it comes with an ability to cause humongous damages and emotional turmoil. Depending upon the policy one has opted for, it can safeguard an individual from property-related lawsuits. Selective policies may provide a cover during the unfortunate incident of one accidentally damaging another property in the close neighborhood. Additionally, it will also cover the medical expenditures of a guest injured in one’s property which has the potential to bring up a lawsuit.

Low-cost premiums

Home Insurance plan is designed for the betterment of the people and hence the precedence goes to making it as affordable as possible. It is indisputable that this will always be treated as an additional cost and it should be crafted out well to penetrate further into people’s minds and make this a standard purchase in the society. Further to build upon that, home insurances are usually cheaper, easy to opt and hassle-free. They have an annual premium which is less than 1% of the property cost or the potential damage and are easily affordable. An individual opting for home insurance can also enjoy benefits whilst doing taxes, another lucrative alternative to encourage more people to opt for one.

Offers you peace of mind

A home is every individual’s dream and one of the most valuable investments of a lifetime. Getting the house insured bestows with the ultimate luxury i.e. peace of mind. Whether it is an apartment, a villa or a penthouse it is a place to dwell and one of the basic necessities of human beings. Even if uncertain it allows one to be rest assured that come what may, the roof above the head and everything underneath it is secure.

House owners Insurance

What is covered by Homeowners Insurance?

Property insurance that shields against the damages caused to the house or secures its belongings is termed as homeowner insurance policy. This policy ensures safety from various catastrophes that can cause losses to the house and loss or damage to its belongings, and other liabilities associated with the home. It is highly recommended to opt for homeowner insurance plan as this plan may help one redeem or recover the damages so that it doesn’t cause emotional or financial stress; since one could take their entire life and monetary savings to build and live in a functioning household.

What does homeowner insurance plan protect you from?

Home Owner Insurance covers numerous perils under its plans that would protect one’s home. Some of the common peril coverage offered by many companies is listed below:

• Fire
• Lightning
• Damage from an aircraft collision
• Storm/Cyclone/Typhoon
• Flood and Inundation
• Riot, strike and other malicious damage
• Subsidence and Landslide/Rockslide

Other perils covered under this plan include missile testing operations, leakage from automatic sprinkler installations, bush fire and terrorism.

Why is the homeowner insurance plan required?

Having Homeowners insurance plan is very essential as it not only offers security to your house but also to its belonging along with cover for your liabilities which include injuries or property damage. One or one’s immediate family members that are accountable for the house and its belongings will be eligible for the cover. Homeowner Insurance plan will not only save you from unanticipated expenditures but will also help you make your home more resistant to natural catastrophes. It is a way to insure oneself from the potential financial burden or emotional distress that may be caused by the damages that occurred to the house.

What are the benefits of homeowner insurance plan?

Homeowner Insurance plan has a bunch of features and benefits which is why it is a no brainer that one should opt for it. Some of them are listed below:

Comprehensive Cover: It ensures that one’s house and all the assets and liabilities are protected from almost all the types of catastrophes that will result in damage to property.

Coverage limits: Each coverage in a homeowner insurance policy is governed by a limit i.e. the maximum amount your policy would pay to cover a loss. However, one can adjust the maximum coverage limits based on their inventory and the items that they would want to cover to avail the best benefit.

Temporary living expenses: If the catastrophe is devastating enough to make a house uninhabitable then some of the policy offering companies may allow some monetary benefits that would help one obtain a permanent place wherein one can relocate until the damaged property is repaired/rebuilt.

Flexibility in cover options: Some insurance companies allow individuals to choose the perils of their cover policy from the available option to make the policy as suitable as possible.

Less paperwork: The homeowner insurance plan requires comparatively less and simple documentation owing to the seamless online process.

Easy application process: The process of applying for this plan is quite easy and can be applied through the online mode as well.

Coverage for home structure or additional structure

Homeowner insurance plan offers cover not only to the house, household belongings but also to some additional structure that would fall within the surroundings of your house. The additional structure includes:

• A fence or a boundary outlining the household territory
• A detached Garage
• A small outhouse
• A swimming pool

There may be some more depending upon the policy that is being chosen and the insurance company.

Coverage for personal property

The Homeowner Insurance policy would not only offer cover the personal property but also offer coverage for a rented property, additional structure alongside the house and all the belongings associated with the household.

Does the homeowner insurance plan offer coverage for an additional living expense?

Yes, if the mishap is quite serious and cannot allow an individual to live in that house anymore then the policy would offer some monetary benefits to be redeemed so that one can look out for other temporary living options and is able to bear those benefits.

Coverage for personal liability and medical payments

Personal liability and medical payments are two of the key components of the Homeowner Insurance policy that would ensure safety towards the damage of expensive personal items like jewelry, watches, electronics, etc. Medical payments are also issued in case of an injury or death, visitor injury in one’s house, etc. However, the coverage might differ from insurer to insurer.

Can one opt for partial cover for contents?

Yes, one can opt for a partial cover for the contents that comply with the coverage options listed for the policyholder so that one can design the policy, premium and redemption plans as per one’s needs; thereby making the service flexible and user-friendly.

What is not covered under the homeowner insurance plan? (Exclusions)

There are certain exclusions or features that are not covered under this plan. They are listed below:

• Loss of cash
• Damage due to a nuclear attack
• Loss or damage that might be due to wear or tear
• Damage or loss due to war
• Wilful destruction of the property
• Loss or damage to paintings, antiques or other works of art
• Loss or damage to electronic equipment due to over usage or excessive pressure

Homeowner insurance claim process

Every insurer has their own claim process and if the insured wants to make a claim he or she has to file the claim as per his or her company (from where the policy is purchased) standards. The claim process differs from insurer to insurer. At some instances, the insured might need to file an FIR for certain claims and its copy needs to be submitted to the insurer. Documents such as Medical Officer’s Certificate for death/disability, fire brigade report, supplier’s original invoice for replacement, repair estimates, court summons, police investigation report and invoice of owned articles must be submitted while filing a claim.

FAQs

Most frequent questions and answers about personal accident insurance

1. What are the most popular companies in India that offer Homeowner Insurance?

Given below is a list of the most popular companies in India that offer Home Owners Insurance.

• HDFC Ergo Home Insurance
• ICICI Home Insurance
• Oriental Home Insurance
• IFFCO Home Insurance
• New India Assurance Home Insurance
• Bharti AXA Home Insurance
• Future Generali Home Insurance
• SBI Home Insurance

2. 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 the homeowner insurance plan. Due to 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.

3. Where to buy homeowner insurance from?

There are various insurance companies that offer a homeowner insurance plan. However, comparing the various plans on an insurance broker or web aggregator’s website will help you find the best plan at the best price.

4. Can two homeowner insurance policies be purchased?

Yes, one can buy two homeowner policies but these policies must be purchased from different insurers.

Why Do Chartered Accountants need Professional Indemnity Insurance?

The most common question that hits anyone’s mind when
he/she hears that Chartered Accountant (CA)’s need professional indemnity
insurance is that “Why do They need it?” The profession which assists other people in their financial matters many
times can find him/her in a legal suit. This profession has lots of crunching
of numbers. Though how meticulous and proficient your Chartered Accountant is,
there can be chances of faults that can hinder the other person financially. To
prevent from falling into some legal trap, it is essential for Chartered
Accountants to buy Professional Indemnity Insurance.

Also, this policy guards if one of the CA’s clients
claims that your action has caused some monetary losses. It typically covers
settlement fees and attorney fees along with court costs up to a certain limit
as discussed with the insurer.

Professional Indemnity Insurance (PII) or also known
as Professional Liability Insurance (PLI) or Error & Omissions (E&O) is
liability insurance that protects individuals from professional
legal expenses and related risks.

While delivering the professional duty, CA’s are
likely to impart guidance to clients which includes advice related to auditing,
business valuations, IT Consultancy, migration services, investment advice,
taxation, forensic accounting and many more related terminologies. However,
claims or potential claims against Chartered Accountants often arise with the
finest practitioners as well. If the client incurs losses, he/she will look for
ways to recover costs, irrespective of the fact how efficient these work was.

What does it cover?

If the CA is sued for any alleged or actual
professional error, the professional indemnity insurance protects his/her
accounting firm. In case, wherein he/she appends advice to their client and the
client files a claim against the CA for losing their money, this insurance will
cover all the legal expenses.

Even if CA loses the case in the court, the
professional indemnity insurance also compensates the other party on his/her
behalf. It also covers administrative expenses, legal expenses and settlements
or court judgements in case of any lawsuit.

Reduced Chartered Accountant Indemnity Insurance
Premium Quotes

The amount of the premiums depend on the risk that is
driven by the revenue of its accountancy firm, the area of practice, past sales
and clientele base, location and number of practitioners. However, the premium
for some Chartered Accountants would be much higher at one part of the country
as compared to other part. One of the examples could be that for a Chartered
Accountant from Mumbai or Delhi have to pay higher premiums as compared to
those from Agra or Orissa.

Conclusively, a lawsuit could probably take a
catastrophe turn even if you perform your duties efficiently. Any ongoing cases
can hamper your flow of work or revenue model. The Chartered Accountant can
protect himself/herself by opting for the Professional Indemnity Insurance.

Nowadays, when everything is revolutionized from
traditional approaches to online views one can even look out the best insurance
available online. It also includes finding the best medical insurance / health
insurance
 plans or looking for the optimum vehicle
insurance plans. Similarly, you can also search for the best professional
indemnity insurance plan online by comparing with the various quotes available
online.

What Kerala Floods teach us about Insurance!!

Strap: Every individual should have a basic policy like term plan and medical insurance

In the past few years, India has seen floods almost disrupting important parts of the region. We saw Uttarakhand floods in 2013, destroying thousands of lives. Similar floods also took place in Jammu and Kashmir and Tamil Nadu where again numerous people died. For the past fortnight, the southern state of Kerala has seen worst floods in over 100 years and hundreds of people have lost their lives while thousands of them remain displaced by the floods.

Impact of all the floods on insurance companies would be huge. There are estimates that insurers might witness claims of over Rs 1,000 crore from the Kerala floods. Losses for insurance can come from vehicle insurance, auto insurance and even from medical insurance. Most of the losses for the insurers would be re-insured, and they would be facing very minimal losses. But as an individual, we would be worst affected by the impact.

Imagine, if one must be staying at the worst flood-affected districts of Kerala, then not only your home but also vehicles would be destroyed by the floods. In some cases, even lives would have been destroyed which would impact their family in a big way. Many times, such situations teach important lessons of not only financial planning, but also on how to buy the right insurance.

One can argue, this is not the right time or way to promote insurance. But the kind of devastation we have seen in Kerala, one must have adequate insurance cover to overcome such calamities. One must understand that insurance can cover such high risks with minimal premiums and help family members in your absence.

Rakesh Goyal, Director at Probus Insurance says that “Individuals should have some basic policy in place so that in time of crises it can take care of their family members. Basic term cover along with medical insurance is must nowadays. Apart from that, one should also have adequate home insurance cover, so that one need not worry if there is a calamity as seen in Kerala.” Home insurance covers losses to the structure and contents of your home due to natural calamities such as fire, lightning or floods. It also covers burglary/theft and earthquake.

One of the lessons to learn from crises is that every individual should have some basic life as well as non-life policy with them. One should always have a pure online term plan to take care of their life insurance. Apart from life insurance, there is an urgent need to have health insurance plans along with some critical illness cover. Lastly, they should also have home insurance and one should always renew their vehicle policy once it gets over after the period of one year. If either life or non-life policies is missing from the portfolio of an individual, he should immediately rectify the error and buy the policy which can help him and his family pass through the crises.

What happens when one Insurance Company merges with another??

Strap: Three Public Sector Companies will be merged into one entity which will have impact on policyholders as well as agents.

Indian Insurance Industry is going through a lot of transformation. First we saw several  leading insurers, both life as well as general insurance getting listed on stock exchanges. In the past few months there are numerous reports on merging of three public sector insurers, while another leading non-life private insurer is all set to buy Star Health Insurance.

Finance Minister, Arun Jaitley in his budget speech had announced the proposal to merge National Insurance Company Ltd, United India Assurance Company Limited and Oriental India Insurance Company Limited which will be subsequently listed. We already have New India Assurance Ltd,leader in non-life insurance listed on Dalal Street.

However, mergers and acquisitions are not easy, as there are many advantages and disadvantages attached to it. 

There are multiple factors like, 

What will happen to the  existing policyholder if they are shifted to a new company.???

Will premiums rise or fall during next renewals??

What will happen to the agent?

Currently Insurance Regulatory and Development Authority of India (IRDAI) norms allow corporate agents to sell policies of three life, three general and three health insurers.

How will corporate agents migrate from one company to another??

There are various others problems like technology sharing, transition of employees and taking care of policyholders. Investors should also look at claim ratio of the acquiring company-whether its better than the current insurers.

However if we see trends in the international markets, there were court cases filed as two big health insurances were merged. It is believed that, merger would lead to fewer choices and higher premiums for individuals and employers in places like New York, Los Angeles among others. It is also believed that, the mergers could also hurt doctors and hospitals, because they would have less bargaining power against the larger insurers when negotiating reimbursement rates. Various studies shows that, consolidation in the health insurance industry between 1998 and 2006 was responsible for 7% additional increase in premiums in US.

Having said that, mergers do generate cost reductions, consumers generally benefit in the form of some combination of lower premiums, better service. Achieving higher-quality care requires more collaboration across the many practitioners and facilities that deliver it.

Web Aggregators – The New Transformers in the Insurance Sector

During the Pre-Internet era, if one had to purchase an Insurance Policy for themselves or their loved ones, he/she had to face lots of hassles. In those days, one had to first hire a policy agent, then the agent would visit often for formalities and collection of premiums, moreover, the fear of being duped due to inadequate information, all of this used to ultimately increase the stress level of the insured individual.

These processes were really time-consuming and stressful especially for the metropolitan city where time is more precious than money. People would always delay or avoid such extensive and time-consuming process.

However, the advent of web aggregators brought a revolution in the way things used to work initially. The Information Technology has proved a boon in bringing up such innovative ideas wherein people do not have to bother to hire an agent or stand in long queues in an insurance office. Everything could now be done at just a click of the mouse or on your mobile app. All you need to do is just visit thewebsite of a recognized web aggregator and get all the information at one place on a single screen. You can now compare all the competing features of the policy you want to opt for along with its cost and coverage. 

So the question is who are these web aggregators? The answer is web aggregators are the companies that are registered under Company Right and are approved by IRDAI (Insurance Regulatory and Development Authority of India). The main role of the web aggregators is that they help the end customer to compare various policies online through an online insurance portal. They gather data from various sources and databases, such as insurance company websites, and compile this data to make it presentable to any potential insurance policy buyer. These aggregators have agreements with the insurance company to provide the relevant information about their company.

The value purpose of the web aggregators is to provide the end customer with an unbiased selection of products, enabling the customers to make a wise decision.The web aggregators have made the life of the busy buyers simpler and also help raised the bar of the Insurance Industry in the online market by stepping ahead to another level.

Want to know about Celebrity insurance – famously known as Body Part Insurance

When we talk about Celebrity insurance, it conjures images of dazzling personalities with all their attention and wealth and an assumed fact that their insurance policies are all marketing gimmicks rather than a required facility.

This can be partially true as most celebrity body part insurance is sponsored by agencies and networks to provide a marketing and promotional angle to the celebrity’s personality.

But in many cases, it is the celebrity who feels their unique body part is worth insuring against future loss. A typical policy indemnifies the celebrity against any business loss due to damage or injury to the body part.

Famous examples of body part insurance are

In India, Amitabh Bachchan has insured his famous baritone voice, so has Rajnikant insured his unique voice and got a copyright on its usage. Our own nightingale Lata Mangeshkar has insured her voice for an undisclosed amount.

Similarly, sports persons namely Sania Mirza, Vijendra Singh have insured their hands against any injury or loss.

Internationally, body part insurance dates back to early 20th century when the than famous comedian Ben Turpin insured his crossed eyes for $20000, in case they became uncrossed.

Today we have many film personalities like Daniel Craig, who has the Bond movie series banking on his shoulders, insuring his whole body for $9.5mn.

Julia Roberts famous pretty woman smile is insured for $30mn, Singer Mariah Careys legs are insured for $1bn, Jennifer Lopez famous derriere has be insured for $300mn and the list goes on.

Even famous food and wine tasters have insured their talent and ability to taste and smell against any business loss, in the event that their qualities are compromised. Lloyds of London had insured the nose of famous wine taster Ilya Gort against loss of either his nose or sense of smell.

Insurance Companies – In India, United insurance company, New India Assurance company, ICICI Lombard and Bajaj Life insurance are few companies providing such customised policies.

Internationally Lloyds of London provides all such specialty insurance products.

What are the aspects that an insurer looks at before writing these specialty products.

An insurer usually looks at the financial capacity and popularity of the celebrity, their future earnings and the importance of the body part or talent to be insured.

Is the specialty line or body part insurance available for everybody?

Any person can go ahead and take these yearly insurance policies. The only difficulty is that, since it is a totally customised product, the premiums are very high and so is the sum assured which starts from anywhere between $5mn to $10 mn.

And most importantly, the insurer needs to be convinced about the need to insurer a body part or talent.

When should a person go for specialty line insurance?

Unless your business depends on your unique ability, like being a famous chef or wine taster , you should better go for other types of insurance like total or partial disability insurance , which covers all types of disabilities and loss of income therewith. Also the terms of claim payment are also very stringent.

So, in case you feel you are a budding celebrity or a rising star in your field, do go ahead and check for specialty insurance for yourself. Otherwise, personal accident policies are always available aplenty.

The Paperless Insurance Industry

Insurance companies, agents and brokers are experiencing a major shift in what their customers and clients have come to expect from them.

It’s the growing strength of the digital natives in the workforce, which has huge implications in terms of customer engagement and growth of businesses. As the millennial generation garners its peak buying power, digital and more-automated ways of doing business will become a fundamental part of day-to-day workflow.

Shift towards mobile interface, cloud-based technology, social media interaction and a challenging regulatory environment will be the prevailing way of doing business.

Insurance companies, brokers and agents alike, are finally realizing the need to be more nimble, efficient and accessible in order to serve today’s customer.

They have to accelerate digitization of their workflow, making it more flexible, along with streamlining of business processes to make the cost of doing business more efficient and in-line with these regulations.

According to a Harvard Review report, insurance agents who embraced the digital practice reported a 65% cost reduction and a 90% reduction in turnaround time on key insurance processes.

Let’s look at the process of business transition to digital workflow. There are three key areas which need to be addressed in order to create automated, user-friendly processes.

1. Embracing a blend of cloud-based and on-ground infrastructure Based on the systems and processes of the organisation a hybrid version of cloud and on-premise technology will come in force, ensuring ultimate flexibility for customers and clients. This can be in terms of multiple access points of application uploads for agents or app based unique account access for clients.

2. Automating business processes Automation will reduce the personnel based interaction between insurance entities and their clients but relationships will still need to be maintained. The key is to move towards a digital environment and an improved customer service by automating the first level workflows and connecting them with multiple channels on various levels. At the same time, ensure a set frequency of personal interaction between customers and their insurance agents and brokers.

3. Choosing programs and systems with customers in mind The customer experience of seamless, intelligent process has to be the foundation of all customer interaction, right from brand awareness creation to lead generation, form filling to renewals and claims settlement. The likes of eKYC, Adhaar and digital repositories for insurance industry have reduced the dependency on age old disconnected systems and processes.

End of the day, how smartly organisations utilize artificial intelligence, will differentiate them from their peers and provide them the much required edge.

The Best Way To Protect Your Property Now

It is an ideal choice that you are thinking about buying a property, but it’s also a smart choice to opt for property insurance too. The question is what is the need for property insurance? You put out you entire life’s saving in buying a property so why not shield against loss or damages caused to your property. Here are few factors why you must invest in good and reliable property insurance.

  • Property Insurance covers all kind of damages caused to your property because of natural and man-made calamities such as fire, lightning, explosion or implosion aircraft damage riot, strike and malicious damage, storm, hurricane, cyclone, gale, hurricane, tornado, deluge, and inundation.
  • It also covers earthquake (fire and shock), subsidence and landslide including rock slide (however few policies do not cover flood or overflow of the sea, rivers and lakes due to earthquake).
  • It also covers damage caused due to any rail or road vehicle (it includes vehicles other than belonging to the insured person or the employees of the insured person or any occupier of the Insured Premises) or animal.
  • If also covers incidents such as bursting or overflowing of water tanks, apparatus and pipes
  • Covers damages caused to your property because of missile testing operations
  • It also covers any leakage caused by automatic sprinkler installations
  • Also covers damage caused to the property because of bushfire excluding loss, destruction or damage caused by forest fire
  • For few insurance companies, the damage coverage due to terrorism is optional
  • The contents of the home are also covered against burglary or theft. The coverage also covers theft and burglary of silver items, ornaments, precious stones and other precious items (provided these are kept in a locked safe within your home premises).
  • Get full coverage of the structure of your home
  • Secure your assets from any unpredictable situations
  • The property insurance comes at a comparatively lower premium rate than other insurance policies
  • In case of unforeseen situations, you need to take stress since you have a reliable insurance company to fall back to


These are factors why property insurance is not only the best choice but also the wise choice. Investing in property insurance is like investing in safeguarding your own valuables

Ten Common Mistakes Everyone makes in Insurance.

1) Looking out for Cheap Insurance Providers.

When one is buying insurance one should always opt for plans with good quality of relevant coverages rather than randomly choosing insurance plans that are cheaper. One should not buy an Insurance plan just for the sake of it. One should always rely on an expert advice which is transparent and which can help you take a wise decision not falling for cheap insurance plan providers.

2) Ignoring the policy document before agreeing to it.

One should always take care before accepting the plan and proceeding with the payment. Checking the policy proposal document and checking for all the inclusions and exclusions as committed in the plan is very important. One should make sure that there is thorough transparency from both the ends, from the insurance provider as well as from the policyholder’s end.

3) Considering an Insurance Broker to be of no value.

There are many Insurance providers in India, but the best out of all are the expert advisors who handle online portals that are superlatively transparent with no hidden charges. Insurance Brokers like Probus Insurance, Bankbazaar are the best consultants and considering them of no value is a very big mistake one must be resorting to. Insurance Brokers provide you with unbiased product knowledge. They fill you in on the best possible and relevant plans as per your requirements. They can assist you in claim settlement procedures. They provide quick services. They provide you with an easy to understand quote comparison platform for you to be able to buy the policy as per your own convenience.

4) Staying Underinsured.

An Insurance plan should cover all the risks one is exposed to. One might remain underinsured if he/she resorts to not sharing all the risks he can be exposed to. For example while choosing a Health Insurance Plan one should always be very sure about the diseases that can act as probable risk factors. There is no point in hiding existing diseases as that will leave you under insured. While buying auto insurance one should be aware of the coverages offered in the specific model of the car. Ideally, one should take choose a relevant cover while buying the car or at least find out about the plan that best suits the vehicle.

5) Missing out on Renewals.

Insurance policies have an expiry date and a time period for renewals. Depending on the policy plan and premium paying mode chosen by the policyholder there are monthly, quarterly or yearly renewals that need to be done. Missing out on renewal dates may detach the policy owner from the policy benefits and also on loyalty bonus that one gets on renewing the policy regularly.

6) Not being true to oneself and to the Insurance Provider.

To avail the benefits of the best insurance plans, one should always stay true to oneself and to the Insurance providers with the basic personal details like name, mobile number, Aadhaar card number and all the required relevant details needed by the Policy providers. One should also be true about the potential risks. Policy owners need to support and be co-operative with the verification process and help the insurance providers complete their verification procedures.

7) Practicing Claim Rejection methods.

The thing to be noted while buying an insurance policy is to understand that Insurance Companies are wary of writing policies for people who have a history of seemingly frivolous claims. Buying an Insurance policy is easy, but claiming the money at the time of an insurmountable financial problem from a single moment of destruction is very difficult unless you are attached with good claim assistance services. The claim has to be documented completely and demanded only for a legitimate claim. If the claim is minor, it may be in your best interest to pay the costs out of pockets (considered as deductibles). What is important to note here is that a list of small claims to reimburse the money invested can work against you. It is a mistake to practice such claim rejection methods.

8) Choosing the wrong plan.

Buying an Insurance plan is always based on the circumstances and situation the policyholder is surrounded with. While choosing an Insurance Plan, some of the necessary things to be considered are the increase of income, the decrease of income, addition of children, loss of family member, sudden diagnoses of illness that requires constant medical care. These circumstances are ignored or neglected often and this is considered to be as one of the common mistakes everyone makes while buying Insurance. One should make sure an appropriate plan is chosen which meets all their present-day life situations and also meets the future needs.

9) Over-insuring oneself

Over Insurance is defined as a situation where an Insured has bought too much coverage that exceeds the actual cash value or the replacement cost of the property or the life insured. Over Insurance generally happens in cases of property owners but it is also for policyholders with death and disability benefits. One should have peace of mind about being correctly insured while choosing a plan rather than being afraid about remaining underinsured.

10) Not understanding the policy It is very necessary to understand the terms and conditions of the policy you are planning to buy. One cannot afford to not understand the policy as it is very important to understand the terms under insurance and over insurance that the insurers regard to. One needs to review insurance annually and ask the broker or insurance company regarding the insurance plans. One should also understand to align the policy with the current financial conditions