property insurance
Housing Society 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.

  1. HDFC Ergo Home Insurance
  2. ICICI Home Insurance
  3. Oriental Home Insurance
  4. IFFCO Home Insurance
  5. New India Assurance Home Insurance
  6. Bharti AXA Home Insurance
  7. Future Generali Home Insurance
  8. 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.

FAQ's