Home Insurance – Points To Be Noted

M Ravichandran, President – Insurance, TATA AIG General Insurance Company Limited explained home insurance and its importance. Home insurance is still at a nascent stage in India and the awareness for home insurance in our country is not very high. Gradually, with the growing real estate sector, home finance has emerged as an indispensable part of real estate. Natural disasters, such as earthquakes, floods and tsunami have also led home owners consider insurance for their homes.

Numerous Home Finance Companies (HFCs) are offering home insurance policies while providing home loans in India. In order to safe guard their interest on the property, they have financed against natural calamities, fire or its allied perils encourage their customers into choosing insurance for the home structure. Most insurance companies also offer personalised policy plans to suit the owner’s needs and budget.

Some key points which one should keep in mind while opting for home insurance are:

Sum-assured Calculation – It is calculated by multiplying the built-up area of your home with the construction rate per square foot. Construction cost depends on the type of construction of the building and can easily be obtained through the builder, architect or local engineer.

Premium Costs – The premium cost depends upon a wide range of factors. If the cover is opted for structure and the contents of the house against fire and allied perils such as natural disasters, then the premium may not be very high.


Benefits offered by home insurance are as follows:

Fire: This covers explosion / implosion, aircraft damage caused by aircraft, riot, strike, malicious damage cover, damages due to impact by rail / road vehicle or animal, bursting and / or overflowing of water tanks, apparatus and pipes, missile testing operations, leakage from automatic sprinkler installations, lightning, loss caused by storm, cyclone, typhoon, tempest, hurricane, tornado, flood and inundation, destruction by subsidence of part of the site on which the property stands or landslide and bush fire.

Cover includes: Building, contents, rent for alternative accommodation, covers additional expenses on rent incurred by you in case of loss or damage to the premises caused by an insured peril rendering the premises unfit for occupation and forcing you to shift to an alternative accommodation for a maximum period of 30 days, impact damage by own vehicle.

Public liability: Covers your legal liability as a house owner towards others (third parties) and your domestic helps.

Burglary and theft: Provides cover to the contents of the house against burglary and theft. Any resultant damage to your house subject to a maximum payment of 10 per cent of the benefit sum insured or Rs 5,000, whichever is less.

Purchase protection: It provides automatic protection for newly purchased articles against fire and burglary up to 30 days from the date of purchase.

Pedal cycle: It covers your pedal cycle comprehensively against accidental damages. Additionally, it also covers liability towards third party injury and/ or property damage up to Rs 10, 000 only.

Plate glass: Securely fixed plate glass (e.g. windows) is covered against accidental loss or damage resulting into breakage.

Baggage: Your accompanied baggage is protected even while you travel. Any accidental loss or damage and theft of personal baggage during the travel is covered anywhere in India.

Audio visual appliance: It covers fire, burglary, theft, legal liability, accidental damages and breakdowns associated with audio and audio visual equipment

Domestic appliance: It covers your domestic appliances like refrigerator against the risk of unforeseen and sudden mechanical and /or electrical breakdown.

Expenses for temporary resettlement: In case your home has been rendered uninhabitable due to fire, Home Secure covers the cost of packing and transportation (up to specified limits) of your household goods to an alternative residence.

The covers available under Home Insurance are comprehensive and can be customized to cater to individual needs of each customer. It is recommended that all customers consider opting for a comprehensive home coverage from a reputed company that has a good track record of efficient claims servicing to its customers.



ROF Group

Plot No.80, 1st Floor, Sector-44, Gurgaon-122003

Tel: +91 124 4399 399

Email: info@rof.co.in


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