Home Insurance-Things to Consider and Advice for NRIs

by Kim Gill Writer

House is one of the most expensive assets a person attains in his life. And it’s important to protect your asset against a variety of reasons. The home insurance policies cover the home against natural disasters like flood, earthquake, fire, lightning, explosion, aircraft damage, cyclone, storm or landslide.

Apart from the natural disasters, a home insurance policy covers many other assets as well, which are equally important for house owners.

There are two types of insurance: building and valuables inside. You can choose both or either one as well.

Many NRIs invest in property in India for rental purpose, and they have to hire a caretaker to look after the house or either hires a NRI property services provider to cater their needs. But even then there’s every possibility of theft or burglary, fire and allied perils, or breakdown of mechanical or electrical equipment etc. So, it becomes even more so important for landlords to insure property against damage caused by tenants.

What does policy covers?

Policy for home insurance has many sub-divisions and the premium varies according to the category you pick. For example:

Section 1: Fire and allied perils

Section 2: Burglary and theft

Section 3: Jewellery and precious items

Section 4: Electronics and gadgets

Section 5: Personal accident

The loss and reclamation are different for each section and every company has a different price for these sections.

The policy generally covers the building of your home and contents against:

 

•        Fire, Lightning, Explosion/ Implosion

•        Earthquake, Storm, Cyclone, Typhoon, Hurricane, Tornado, Flood and Inundation

•        Riot or Strike

•        Terrorist attack

•        Damage by rail/road vehicle or animal

•        Landslide including Rockslide

•        Damage by Aircraft

•        Missile operations

•        Overflowing of water tanks, or bursting of apparatus and pipes

 

Premium Payable

The premium depends upon the plan you choose and products you’d like to insure. For insurance, you should consider insuring the place according to the future cost and not the current value, also book according to the market value and not the paper value.

For instance, if your home is valued at Rs 70 lakhs and your belongings such as appliances, jewellery and furniture cost an added sum of Rs 10 lakhs, then the amount payable as premium would be Rs 4800 per month.

But you don’t need to cover such high amount; check if the region you're buying in has any history of natural disasters. For cities like New Delhi, which is in the middle of the land, will not get floods, and also don’t have much history of earthquake or cyclone.

Also, the price of the land is much higher than the cost of construction. So, choose cover according to the construction cost, if you aren’t concerned about building but valuables inside, you can choose the cover according to the valuables. 

 

Process of Claim

Process of claim can be hectic and time consuming in time of exigency. Therefore, having good relations with an agent always comes in handy. Even then you must inform the agency or company in case you need to claim the insurance.

Save the initial documents you’ve received saved on your mail, since it’s most possible in case of a fire or earthquake, you won’t find them anyways. 

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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